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Sir
Bpp solution, when they calculate the duration, they multiply the PVs for each year by (1.11 by the number of years of reinvestment) before plugging into the MIRR formula.
Also, they don’t multiply by (1+Re), as per the MIRR formula?Is this an alternative way to calculate MIRR?
Thanks
The examiner who introduced MIRR into the syllabus (the previous examiner) wrote an article showing how to calculate the MIRR the way that the BPP question does it (and that is why BPP do it that way in that question).
However, the same examiner put the formula on the formula sheet which is actually easier to use!!(They are two ways of arriving at the same answer)
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