IRR

This topic has 1 reply, 2 voices, and was last updated 12 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
April 9, 2014 at 3:33 am #164825
armaghanbutt
Member
- Topics: 27
- Replies: 39
hi !! iwant to ask that for IRR if 10% NPV is positive than we 2nd NPV higher than 10% which will be 20% ,SO NPV 2 is 20 % .. am i right ? now if its for annual return if 12% is positive for negative we have to lower than 12% ? ISjust opposite?
April 9, 2014 at 6:29 am #164828
John Moffat
Keymaster
- Topics: 57
- Replies: 54835
If the NPV is positive at 10%, then your second guess you be higher than 10%. (It does not have to be 20% – it can be anything higher than 10%)
If the NPV for your first guess is negative, then your second guess should be at a lower rate of interest.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.