financial managment
This query is : Resolved
Guest
Guest
(Querist)
31 August 2010
Can any one give me a clear concept of internal rate of return ?
31 August 2010
internal rate of return is the minimem rate of return we can execpting from the project.
if IRR is more than cost of capital then we can accept that project
here in simple terms
IRR = RETURN / PROFIT
COC = Cost
(only for ur understanding purpose i am giving these definitions)
if IRR is more than cost of capital then we can accept that project
here in simple terms
IRR = RETURN / PROFIT
COC = Cost
(only for ur understanding purpose i am giving these definitions)
31 August 2010
In one line
IRR is a rate at which NPV is zero
so you should accept a project if
IRR> Cost of capital
IRR is a rate at which NPV is zero
so you should accept a project if
IRR> Cost of capital
31 August 2010
IRR is the rate at which you are getting present value of future cash flows back against what you are investment will be equal
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