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IRR values

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › IRR values

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by AvatarJohn Moffat.
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  • March 10, 2014 at 3:52 am #161943
    Avatarnari
    Member
    • Topics: 259
    • Replies: 175
    • ☆☆☆

    Hello Mr Moffat
    Suppose I am calculating IRR and the 2 Discount Factors used are 10% and 20% with the latter resulting in a smaller but at the same time still positive NPV, In a situation like this what should I state in the answer?

    March 10, 2014 at 6:32 am #161956
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    No problem. You can still use exactly the same approach that I use in my lecture (and you will end up with an IRR of more than 20%.

    I think that I actually give an example of this in my lecture.

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