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Sir, Do the IRR of some projects get in conflict with the NPV of it, if does, Could you please explain to me how would it be? And Is it possible to calculate IRR without reference to the cost of capital, If does, how would it be?
When appraising just one investment then there is never a conflict.
There can be a conflict when choosing between two investments, but this is not examinable until Paper FM – not in Paper MA.
As far as calculating the IRR is concerned, there is never any requirement to use the cost of capital in the calculation.
I do suggest that you watch my free lectures on investment appraisal. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
Thank you very much, Sir, for the clarification of my doubt.
Thank you very much, Sir, for providing free excellent lectures for ACCA students.
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