Sir could u pls explain me while calculating IRR can we assume any rate as lower n higher or how do we estimate . Or will the answer b same whatever rate we assume. Thanks
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AFMIRR
11y ago#1You can use any two interest rates to calculate the IRR.
Using different rates will give slightly different answers because the relationship is not linear. However, this is not a problem in the exam (and nor is it a problem in real life - we only need an approximate value, not a precise value).
Have you watched the lectures on this (for F2 and F9, as well as for P4)?
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