- This topic has 1 reply, 2 voices, and was last updated 8 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Hello, if you con hel pe with part c) of the guestion.
Discount rate sensitivity…why 16-11=5% ?
Is 16 “guess”?Thank you for help
The 16% is the IRR and that is not a guess.
In order to calculate the IRR they have used 11% (because that is the discount rate in the question) and 17% (which is a guess).
We always have to make guesses to calculate the IRR – if you are not sure what I mean than please do watch my free lectures on this (and if needed, my free Paper F2 lectures, because calculation of the IRR is revision from Paper F2).
(The lectures are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.