20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>

june 2012 exam question 1 MIRR

This topic has 1 reply, 2 voices, and was last updated 12 years ago by Ken Garrett.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
October 26, 2012 at 3:31 pm #54886
ferrischan
Member
- Topics: 5
- Replies: 8
How is it that in the ACCA model answer, they considered the PV of Investment and Returns with 4.5% and also how come in calcualtion the MIRR, they do not take into consideration the cost of capital of 12.5%? Please assist. Thanks
October 26, 2012 at 5:09 pm #106074
Ken Garrett
Keymaster
- Topics: 10
- Replies: 10526
I think it should be at 12.5%, the WACC. The rationale is that receipts can be invested at this rate, rather than just being put on deposit at 4.5%. You might like to send a question to ACCA about it.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.