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IRR Convertible loans

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › IRR Convertible loans

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • Author
    Posts
  • November 9, 2020 at 7:34 pm #594542
    kane91
    Participant
    • Topics: 6
    • Replies: 1
    • ☆

    When you’re trying to use IRR to calculate the cost of the loans how do you know when to use 10% 5% or 15%

    Thanks
    🙂

    November 10, 2020 at 7:56 am #594564
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    Just as with any IRR calculations, as I explain in my free lectures, it does not matter which ‘guesses’ you use. Any answer is only approximate anyway because the relationship is not linear.

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