A variation of this metric, called the modified internal rate of return (MIRR), compensates for this flaw and gives managers more control over the assumed reinvestment rate from future cash flows.

Modified internal rate of return (MIRR) is used to assess the cost and profitability of a future project for a company. Unlike the standard internal rate of return (IRR), MIRR assumes that positive ...

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 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 ...

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.

Extended internal rate of return, or XIRR, is a financial metric used to calculate return on investments where multiple transactions occur at different time periods.

The capital request is an internal financial control that companies use to determine how best to allocate funds. Those funds are typically borrowed, which means the cost of capital is considered. That ...