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IRR

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › IRR

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • November 26, 2021 at 10:44 am #641686
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    A project is considered viable if its
    (1) IRR>Cost of Capital
    (2) IRR<Required rate of return
    Is this correct professor?

    November 26, 2021 at 3:57 pm #641711
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54796
    • ☆☆☆☆☆

    (1) is correct.

    (2) is not correct. If they are using an IRR approach then the required return will be the cost of capital.

    November 27, 2021 at 12:15 pm #641783
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    Thank you 🙂

    November 27, 2021 at 1:46 pm #641796
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54796
    • ☆☆☆☆☆

    You are welcome.

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