Costs in IRR calculations (Project Finance)
Hello,
For IRR calculations:
1) I have calculated valuation using NPV.
2) Should this npv (i.e. acquisition cost) + all other transactions costs be put on day 0, followed by the fcf line in the same line, to run the IRR formula from?
3) how is the discount treated in the irr formula? should i use discounted fcf or undiscounted fcf when running the irr?
Thanks guys.
Hi BigHuddz08, hope I can help. Do any of these links cover what you're looking for:
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Hope that helps.
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