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How do you work out IRR?
I can see that in the lecture notes the sum is:
10+(20-10)*13875(13875+14350) but this does not give me 15% as suggested in the lecture notes when I put it into the calculator?
Furthermore would I be expected to work this out in the exam?
I thing it should be:
10+(20-10)*13875/(13875+14350)
However, in the SBL exam you are much more likely to be given IRRs already calculated. You need to be able to interpret them and understand them rather than calculate them.
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