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?
Ask the Tutor ACCA SBL
Working out IRR SBL Lecture Notes page 162
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.
Hi Ken,
Thank you so much! :)
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