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I have calculated npv at discount factor of 13 and 20 percent for irr calculation,both figures are positive , I used those in irr calculation.my answer is different from examiner answer.how to tackle with it?I’m using tables and are only restricted to 20 percent.
The IRR will always be different with different guesses because the relationship is not linear, and any answer using two guesses is therefore only approximate.
If you are within a few % of the examiners answer then you are almost certainly correct and would get full marks.
Ideally (but not essentially) you would use guesses that give one positive and one negative. The examiner used 30% which means discounting using the formula because the tables do not go that far.
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