07-11-2010, 12:29 AM
Absolutely !!! ur right!!! this process is called interpolation however we can also compute irr by using two negative values by the same formula this process is called Extrapolation but their are issues with extrapolation regarding accuracy and correctnesss thus we always do interpolation
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Abuzar Qazi</i>
<br />Imdad AOA.........It means the next rate should bring down the negative PV....means k agr 15% pe bhy negative me nahi ati PV so we have to select another rate that should result in neagtive PV..
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<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Abuzar Qazi</i>
<br />Imdad AOA.........It means the next rate should bring down the negative PV....means k agr 15% pe bhy negative me nahi ati PV so we have to select another rate that should result in neagtive PV..
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