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How’s IRR calculated I knw the procedures and formula but when I apply the higher npv and lower npv I seem to get wrong answer can you please explain how to use this IRR formula in simple words.
I do not use a formula – it is not necessary.
Best is to watch my lecture on calculating the IRR.If you use different guesses for the interest rate, then you will get a different answer (because the relationship is not linear) but you will still get full marks. (If your answer is more than 1% different then you have almost certainly made a mistake.)
Thanks for solving my previous question and the lecture did help really appreciate it.
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