IRR using interplotation
LA2018
Registered Posts: 19
Hey!
Can anyone help with the attached? I’m confused with IRR anyway but this question I’m not sure where to start as the second pic has the figures given to me? Also I’m confused with which one causes zero NPV .
Can anyone help with the attached? I’m confused with IRR anyway but this question I’m not sure where to start as the second pic has the figures given to me? Also I’m confused with which one causes zero NPV .
0
Answers

Could you attach the pictures again?0

Ah sorry I thought I had! For some reason it won’t let me upload the pic it’s saying I can’t .The question said “ NPV calculates 450 using discount rate of 8%. What is the approx IRR of the project”. I think I get it now I think it’s not asking me to do any calculations it’s just making sure I understand the % needs to be more then the capital to make a profit?0

0

I am doing question 10.10 in the ‘Analysing costs and revenues’ book but am confused as my answer is correct at 22% but the answer also says ‘ in conclusion IRR is approx 20%’ ? Can someone explain why this is. Would the correct answer in an exam be 22% as the calculation worked out or 20%?0
Categories
 All Categories
 1.2K Books to buy and sell
 2.3K General discussion
 18.9K For AAT students
 234 NEW! Qualifications 2022
 133 General Qualifications 2022 discussion
 7 AAT Level 2 Certificate in Accounting
 31 AAT Level 3 Diploma in Accounting
 55 AAT Level 4 Diploma in Professional Accounting
 8.9K For accounting professionals
 23 coronavirus (Covid19)
 272 VAT
 91 Software
 272 Tax
 135 Bookkeeping
 7.3K General accounting discussion
 201 AAT member discussion (AATQB, MAAT, FMAAT and AAT Licensed Accountants and Bookkeepers)
 3.8K For everyone
 39 AAT news and announcements
 352 Feedback for AAT
 2.8K Chat and offtopic discussion
 586 Job postings
 17 Who can benefit from AAT?
 36 Where can AAT take me?
 44 Getting started with AAT
 26 Finding an AAT training provider
 47 Distance learning and other ways to study AAT
 25 Apprenticeships
 65 AAT membership