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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% ? IS just opposite?
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.
(Please do not post the same question twice in different places)
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