@iwantgovtjob said: When is IRR=0 ?
Try to think about it. What is IRR? What does a zero IRR indicate and is it possible?
Now also try to mathematically reason it out - what happens when you put IRR =0 in the equation.
@chethanbp1989 said:How does doing any of these certifications ( charters ) add weight to ur CV and to ur CAT chances.... Please explain... thanks
Dont have much idea about that but few of my seniors have suggested me to do some finance related certifications as this may show ur passion about finance.......for me the fact is anyhow i want to crack those goddamn interviews......coz i dont have real good extra currics to add something.......
Hey guys I am giving away my old Pristine material for free in Chennai.Pm me if anyone is interested
@[390371:leolazer]
@leolazer said:Try to think about it. What is IRR? What does a zero IRR indicate and is it possible?Now also try to mathematically reason it out - what happens when you put IRR =0 in the equation.
i feel if IRR=O , then wacc=0?
@iwantgovtjob said: @leolazeri feel if IRR=O , then wacc=0?
WACC is specific to the company. IRR is specific to the project.
Why should they be related?
@leolazer said:WACC is specific to the company. IRR is specific to the project.Why should they be related?
I feel when discount rate= 0 then IRR=0
when discount rate= 0 , cost of capital=0
when discount rate= 0 , cost of capital=0
@iwantgovtjob said:I feel when discount rate= 0 then IRR=0 when discount rate= 0 , cost of capital=0
What does IRR have to do with the discount rate !
Is it not the rate of return from the project?
hai IRR is when NPV=0
How will u calculate NPV without discount rate 
@[582498:iwantgovtjob]
I think you are studying too much. Take a break and relax.
This is a very simple question. Once you think with a cool mind, you will get it.
Take one day break and go out somewhere :)
Leo tell me the answer man . i am not able to sleep because of this
@[390371:leolazer]- tell answer man. I cant sleep till i get the answer
@[582498:iwantgovtjob]
IRR is just the internal return on a project. IRR =0 means that the project is not giving any return. Eg: if the Investment is 100 and the project life is 5 years, the cash inflows could be 20,20,20,20,20 or 10,10,50,10,20 or something like that where the total of cash inflows is equal to the Invstt. This means that you would not get anything extra by investing in such a project. The payback period of the project is equal to its life. The discounted payback will never occur.
The NPV of such a project will always be negative.
The WACC of the company may be 1% or 10% or anything else. WACC will only be used as a discount rate for calculating the NPV. WACC does not figure in the calculation of the IRR.
Remember that IRR is the discount rate at which NPV is zero. So if IRR=0, it means that NPV will become zero only for a zero discount rate. For a positive discount rate (practical condition), NPV will always be negative.
Guys it would be great if u can post ur progress made for Cfa level 1 2012 Dec.. it will be great for us to know where we stand in terms of preprations.. Well i have Completed TVM, Alternate Inv, Fixed Income, Derivatives, currenly studying Equity. Planning to finish eveything except FRA and ETHICS By Sep 15th...
And to add to what leo has said, practically a positive IRR also does not imply the project is good or worth investing..... It has be to compared with a benchmark rate of return ( WACC or opportunity cost) ...... if IRR> benchmark rate only then it is worth investing in that project....
@[385977:supro]: Ok then you are talking about increasing ur chances to choose finance as ur specialization .... but while filling CAT application online, under the professional courses section only CA,CS,ICWA were mentioned and they were asking for marks in these courses.... Is it possible to mention somewhere that one is a CFA candidate? PS: myself a CFA level 2 candidate and CAT aspirant 
@[225093:motocheck01]: good job..... well a small advice from my end. If you are having tech background then please touch FRA asap...
yeah i have a tech ground.. had planned to keep FRA and Ethics last.. cos i find FRA quite boring..
@[390371:leolazer] - i need rest
Its alright ... but make sure that U score well in Ethics & FRA as they account for 35 % of the overall weightage..... Ethics has this advantage of being a tiebreaker that if you are close to MPS then Ethics might be your saviour..... Anyways all the best....
@[232279:chethanbp1989] Thanks bro.. i will take a note of it..