• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

March 2026 ACCA Exams

Comments & Instant poll

20% off ACCA & CIMA Books

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

choice of discount factor in IRR

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › choice of discount factor in IRR

  • This topic has 1 reply, 2 voices, and was last updated 13 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 29, 2012 at 6:23 pm #52417
    roby72s
    Member
    • Topics: 9
    • Replies: 6
    • ☆

    Hello I have something to ask in regard of the choice of the discount rate when calculating the IRR. For example in question 1 from December the discount rate is 11%: the pv of the project is positive so we choose an higher discount rate to calculate the second npv. I used 16% however when calculating the npv it was positive instead of negative. then I used 17% and I obtained a negative npv. IN the exam using 16% would have been time consuming: is there a way of deciding which is the best way of deciding which is the second discount rate to use? Many thanks Roberto

    May 2, 2012 at 5:27 am #96932
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54831
    • ☆☆☆☆☆

    There is no best way of deciding.

    However using 11% and 16% is fine – even if you get two positive NPV’s you can still estimate the IRR.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Kaplan ACCA Free Trial

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE Exams – Instant Poll

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • zurapirveli@gmail.com on Equity settled share based payments – goods – ACCA (SBR) lectures
  • Sid24012003 on Intangibles – Example 2 – ACCA Financial Reporting (FR)
  • Ken Garrett on CIMA BA1 Spearman’s rank correlation coefficient
  • Ana1674 on CIMA BA1 Spearman’s rank correlation coefficient
  • tehreem21 on MA Chapter 2 Questions Sources of Data

Copyright © 2026 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in