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irr

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › irr

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
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  • Author
    Posts
  • September 6, 2022 at 6:12 am #665334
    CIWWI
    Participant
    • Topics: 10
    • Replies: 6
    • ☆

    sir this is silly doubt, just a small confusion

    i have wriiten in my short notes tht irr is maximum return v can expect from the project.

    os it coorect sir??

    September 6, 2022 at 8:06 am #665354
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    No it is not correct. The IRR is the rate of interest at which the NPV is zero.

    The return from the project might be higher or lower than the IRR.

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