0
Money deposited in an interest bearing account has a rate of return. the institution will take that money and reinvest it so they can make money off of it as well.
This rate of return on the internal investment is the internal rate of return, which is usually higher than that paid to the original investor.
Internal rate of return is the rate at which your future cash flow when discounted equals to the present value of your investment or proposed investment.
Add your answer:
Earn +20 pts
What is the definition of IRR?
internal rate of return
What does IRR stand for?
Internal Rate of Return
Internal Rate of Return serves what purpose?
Internal Rate of Return is used in capital budgeting. Its primary purpose is to better measure the profitability of investments and to compare this profitability.
How does a change in the required rate of return affect project's Internal Rate Of Return?
A change in the required rate of return will affect a project's Internal Rate of Return (IRR) by potentially shifting the project's feasibility. If the required rate of return increases, the project's IRR needs to be higher to be considered acceptable. Conversely, a decrease in the required rate of return could make the project's IRR more attractive.
Calculation of internal rate of return?
Internal Rate of Return (IRR) Calculator Use this calculator to determine the annual return of a known initial amount, a stream of deposits, plus a known final future value.
What techniques are there for capital budgeting?
A capital budget includes a payback period, the net present value, and the internal rate of return. It may also include a modified internal rate of return.
Internal Rate of Return (IRR) Calculator?
Internal Rate of Return (IRR) Calculator Use this calculator to determine the annual return of a known initial amount, a stream of deposits, plus a known final future value.
What are the three capital expenditure techniques?
Internal rate of return, net present value, accounting rate of return and payback method.
What are the differences between accounting rate of return and internal rate of return?
Internal rate of return (IRR) is a discounted method used for Capital budgeting decisions (investment etc) while accounting rate of retun is a measure for calculating return for a one off payment. IRR is actually the discount rate that equates the Present value of the cash flows to the NPV of the project (investment) while accounting rate of return just gives the actual rate of return. Habib topu1910@gmail.com
How do you calculate internal return rate?
by using the Net present value calculations.
What is c-1 surplus requirements?
determine an insurers internal rate of return
What is c-1 surplus requirement?
determine an insurers internal rate of return
