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ACCA September/December 2020 question 1

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

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March 11, 2021 at 4:30 pm #614199
heriruta2
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Please, help me to know the use of 5% and 3% which calculated value in period 1 to 4 with calculation of in redemption amount
March 11, 2021 at 5:14 pm #614205
John Moffat
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As always when calculating the IRR (as in Papers MA and FM also), you can use any two ‘guesses’. Different guesses give slightly different answers (because as explained in my free lectures the relationship is not linear), but that is irrelevant for the marking.
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