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What is irr ? |
| Answer» Internal Rate of Return or IRR is a measure in capital budgeting parlance which is used for estimating the profit that can be obtained from the investments.Internal rate of return is a type of discount rate that is instrumental in making the net present value of all the cash flows from any project equal to zero.In simple words, it can be referred to as the compounded annual rate of return that can be earned on an investment or a project.Simple meaning:The\xa0Internal Rate of Return\xa0(IRR) is the discount\xa0rate\xa0that makes the net present value (NPV) ZERO.\xa0In other\xa0words, it is the expected compound annual\xa0rate of return\xa0that will be earned on a project or investment.<br>Internal Rate of Return or IRR is a measure in capital budgeting parlance which is used for estimating the profit that can be obtained from the investments.Internal rate of return is a type of discount rate that is instrumental in making the net present value of all the cash flows from any project equal to zero.In simple words, it can be referred to as the compounded annual rate of return that can be earned on an investment or a project.Simple meaning:The\xa0Internal Rate of Return\xa0(IRR) is the discount\xa0rate\xa0that makes the net present value (NPV) ... In other\xa0words, it is the expected compound annual\xa0rate of return\xa0that will be earned on a project or investment.<br>Internal Rate of Return or IRR is a measure in capital budgeting parlance which is used for estimating the profit that can be obtained from the investments.Internal rate of return is a type of discount rate that is instrumental in making the net present value of all the cash flows from any project equal to zero.In simple words, it can be referred to as the compounded annual rate of return that can be earned on an investment or a project. | |