20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March 2026 exams.
Get your discount code >>

Effect of inflation on payback and IRR

This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.

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

Author
Posts
September 4, 2020 at 3:16 am #583315
amyakku
Participant
- Topics: 13
- Replies: 3
Hai sir,
A project has outflows for d first 2 years and series of inflows for the next 3 years. Project gives a positive NPV without considering the inflation. What will be the effect of considering inflation on payback and IRR?
September 4, 2020 at 10:08 am #583376
John Moffat
Keymaster
- Topics: 57
- Replies: 54821
Why are you attempting questions for which you do not have an answer?
This could not possibly be asked in Paper AFM.
The payback period will reduce and the IRR will increase.
Author
Posts

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

You must be logged in to reply to this topic.