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June 2012 Q4 Tisa (2b)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › June 2012 Q4 Tisa (2b)

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • December 8, 2016 at 9:13 am #362180
    cyh
    Member
    • Topics: 26
    • Replies: 42
    • ☆☆

    Hi Sir, i use the Discount rate 20% and 30% in order to find out the IRR 27.6%

    however, when i use the discount rate 30% to find out MIRR, i get the MIRR 28.2%, which is higher than IRR.

    the MIRR working as follow:

    (3591.5/3800)^0.25 x 1.3 – 1 = 28.2%

    may i know which part i was done wrong?
    or we must use the WACC 12.75% to find out IRR& MIRR?

    December 8, 2016 at 3:27 pm #362267
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54656
    • ☆☆☆☆☆

    For the IRR you make two guesses as you have done.

    For the MIRR you must use the WACC.

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