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Understanding Internal Rate of Return (IRR) by mehaksoomro468 is a document available to read on EtoBox.

What is Understanding Internal Rate of Return (IRR) about?

The Internal Rate of Return (IRR) is the discount rate that makes the Net Present Value (NPV) of a project zero, indicating the expected rate of return and used in capital budgeting for investment evaluation. A project is accepted if the IRR exceeds the cost of capital and rejected if it falls below. Other concepts mentioned include the Profitability Index (PI), which measures relative profitability, and the Payback Period, which historically was the first criterion for project selection.

Author

mehaksoomro468

Language

EN