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What is Internal Rate of Return about?

Return on invested capital is defined as the interest rate earned on the unrecovered project balance of an investment project. A company invests $10,000 in a computer and results in equivalent annual labor savings of $4,021 over 3 years. The company earns a 10% rate of return on funds that remain internally invested in the project.

Author
Henna Gautam
Language
EN

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