Tisa (6/12)Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Tisa (6/12)This topic has 2 replies, 2 voices, and was last updated 9 years ago by John Moffat.Viewing 3 posts - 1 through 3 (of 3 total) AuthorPosts April 8, 2015 at 12:42 pm #240509 BrianHMemberTopics: 44Replies: 40☆☆Hi sirBpp solution for part b, MIRR calc…. Is it ok to use the IRR of 28% as the discount factor to calc the PVs for the cash flows?Eg PV yr 2 = 1,153/1.28^2 = 704Thanks April 8, 2015 at 1:12 pm #240511 BrianHMemberTopics: 44Replies: 40☆☆BPP used the WACC as the discount factor April 9, 2015 at 4:29 am #240591 John MoffatKeymasterTopics: 56Replies: 53798☆☆☆☆☆No – it is not OK to use the IRR.The whole point of MIRR is to use the WACC – MIRR assumes reinvestment is at WACC whereas the conventional IRR assumes reinvestment is at the IRR.(The free lecture on this may help you)AuthorPostsViewing 3 posts - 1 through 3 (of 3 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In