CMA Study Group

IRR and NPV

  • 1.  IRR and NPV

    Posted 19 days ago
    Dear All,

    Requesting some inputs from candidates who have already pursued Part 2 or currently preparing for the same.

    Does the exam actually have problems on calculating IRR? While its quite easy on spreadsheet, and I am aware of the IRR concept, do I still need to purchase the recommended calculators from Wiley or Gleim to do these calculations?

    Since I know how to calculate NPV problems on normal calc, was just wondering if purchasing a new calc only for IRR (and that too really if we need to solve these problems in the exams?


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    Abdul Naser Parkar
    Analyst
    Al Nasr, Al Sadd Doha
    Qatar
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  • 2.  RE: IRR and NPV

    Posted 17 days ago
    Dear Abdul,

    You will be permitted to take only normal calculator.

    As you know to calculate NPV in normal calculator then its easy for you to get the range in which IRR comes. IRR is the rate in which NPV becomes ZERO. so just check 2 or 3 discount rates which will bring your NPV near Zero.

    To Get exact IRR you can use this formula.


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    Mohammed Nadeem
    Accountant
    Vi Sigma Apparel Group FZE
    Abu Dhabi
    United Arab Emirates
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  • 3.  RE: IRR and NPV

    Posted 17 days ago
    Dear Mohammed,

    Thank you for your inputs.. This is helpful.. Will try it this way.

    So the calculator recommended by Wiley, too isn't allowed at the exam site?


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    Abdul Naser Parkar
    Analyst
    Al Nasr, Al Sadd Doha
    Qatar
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  • 4.  RE: IRR and NPV

    Posted 15 days ago
    Hi,

    As per IMA, BAII Plus is allowed in the Exam. However, I bought BA II Plus Professional and that was not allowed as per IMA., and it's always advisable to use this calculator instead of a manual calculator, it will save your time on the exam and energy.

    Regards,
    M. Usman