For example, if a company's WACC is 5% and an investment has an IRR of 10%, then it could be worth raising capital to get that higher return.

The internal rate of return of a bond is essentially the rate of return implied by its total cash flows. If, for example, you are offered a three-year bond for £90 that pays a 5% annual coupon in ...

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.

The yield of an investment will tell you at what rate money has grown from time A to time B. An annual yield of 7%, for example, means that Rs1,000 at the start of the year has grown to Rs1,070 at ...

At a 10 per cent discount rate, this project will have a positive net present value of just over $11,160 and an internal rate of return of 59 per cent.