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hi jhon,
i really appreciate your work.
with that being said i come to my question.
i am really having problem with the idea of how to calculate duration for projects with uneven cash-flows i have tried searching for an example but to vain.will appreciate your insight.
The fact that the cash flows are uneven does not affect the method at all.
If you look at page 31 of our free lecture notes, then they steps are listed.
Although the example that follows have equal flows (because it is dealing with debt), the steps are exactly the same.there seems to have been a mistake from my side in stating the question. i wrote un-even cash-flows instead of non-conventional cash-flows.
so jhon if you would b kind enough and enlighten me on the issue of calculating duration for projects with non-conventional cash-flows.There was on exam question that had non-conventional flows (but I am abroad on vacation at the moment and for some reason the ACCA website is not working at the moment, so I cannot check which exam it was).
However it was the previous examiner, and it is unlikely that the current examiner would ask non-conventional flows.I will try the ACCA website again tomorrow and see if it is working then I can find for you the question I am referring to 🙂
thankyou jhon it is much appreciated….would be waiting for your referral of the question. 🙂
I can now access the ACCA website, but I realise I was being silly in my previous reply.
Because it was a question set by the previous examiner, it is not on the ACCA website!
Sorry 🙁
(But again, I would not worry about it from the current examiner)much appreciated jhon…..
but could you help me with a made example as mentioned below.Time 0 1 2 3 4 5 6
Casflow (35000) 10000 (15000) 20000 25000 15000 5000WACC 10% , taxation can be ignored.
i know that IRR can’t be calculated for projects with non conventional cashflows.
Calculate Duration ??
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