The internal rate of return (IRR) is a measure of an investment’s rate of return. The term internal refers to the fact that the internal rate excludes external factors, such as inflation, the cost of capital, or various financial risks
Corporations use IRR in capital budgeting to compare the profitability of capital projects in terms of the rate of return
The internal rate of return (IRR) is a measure of an investment’s rate of return. The term internal refers to the fact that the internal rate excludes external factors, such as inflation, the cost of capital, or various financial risksCorporations use IRR in capital budgeting to compare the profitability of capital projects in terms of the rate of return
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