- This topic has 3 replies, 2 voices, and was last updated 3 years ago by
.
- Posts
Hi John,
Thanks for the amazing lectures. I have a question.
We use IRR to calculate the cost of debt to the company(Kd(1-t) or cost of debt to lender(Kd).
Can we use the =IRR function on the spreadsheet instead of using the long formula?
Would the examiner reduce our marks if we do not use the long workings to calculate IRR by using 2 DF’s which probably will take like 5mins in the exam?
Thanks
Yes you can use the IRR function on the spreadsheet.
And no, using the function will not reduce your marks (and you do not need to show your workings because the marker is able to see what functions you have used).
It is still important to understand the idea of the two ‘guesses’ because obviously the spreadsheet is not available for questions in Sections A and B of the exam.
- The topic ‘Kd and Kd(1-T) – IRR’ is closed to new replies.