for MIRR calculation:
Investment phase= investment only (e.g; 600 invested for machinery) or investment less capital allowance
Time of project: 1/n......is n equal to the duration of the project told (e.g; cash flows over 4 years) or do we use the entire duration (e.g; where because tax is paid 1 years in arrears-5 years)
Finally, Issue cost pf finance (debt and equity)-do we include this in our cash flow forecast to find present value of return and investment phase?
Note: The reason i asked is because several question in the BPP kit used but methods described about-so for december 2012, which one would our examiner perfer? thanks
Investment phase= investment only (e.g; 600 invested for machinery) or investment less capital allowance
Time of project: 1/n......is n equal to the duration of the project told (e.g; cash flows over 4 years) or do we use the entire duration (e.g; where because tax is paid 1 years in arrears-5 years)
Finally, Issue cost pf finance (debt and equity)-do we include this in our cash flow forecast to find present value of return and investment phase?
Note: The reason i asked is because several question in the BPP kit used but methods described about-so for december 2012, which one would our examiner perfer? thanks
