IRR

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

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April 9, 2014 at 3:33 am #164825
armaghanbutt
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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
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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.
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