What is the internal rate of return (IRR)? This article explains the concept of IRR, how to calculate it, why it’s used and its importance.

Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess ...

The internal rate of return (IRR) measures the return of a potential investment while excluding external factors. IRR helps investors estimate how profitable an investment is likely to be. All ...

The rate of return measures how much a given portfolio or asset has changed in value over time. For example, if you invest $1 and have $1.10 a month later, your rate of return is 10%.

What does IRR tell traders? IRR tells traders the projected rate of growth that a company is likely to experience following a project. A high IRR means that a project is likely to be good for growth ...

If it goes up, your rate of return will rise as well. Thus, spot-checking rate of return isn’t always a good temperature check. The best way to gauge true ROI is to calculate over time and observe a ...

From there, you can determine a project's internal rate of return and weigh if that rate is worth pursuing. Here's an example: Say you're on the fence about purchasing a $100,000 piece of equipment.

PV of Rs 1,100 at a discounting rate of 10% = 1100 / (1 + 10%)1= Rs 1,000 How to calculate IRR of any cash flow stream ...