Calculating the internal rate of return, or IRR, of an investment is a powerful tool for businesses. When a manager is faced with a capital intensive decision, IRR can quickly compare the financial ...

The internal rate of return, or IRR, allows investors to analyze the profitability of investments and companies to analyze the profitability of capital outlays. The easiest way to understand IRR is by ...

Making good investments in projects and long-term assets is an important part of growing a small business. You can use internal rate of return, or IRR, to help you make such investment decisions. IRR ...

Every day, business managers make capital budget decisions -- choices about whether to invest in projects such as building a factory, upgrading machinery or investing in research and development. But ...

Q. I have prepared projections for a proposed project, and I want to calculate the internal rate of return. Instead of using Excel’s IRR function, should I use simple math formulas so others can ...

Using a calculator, we see that the IRR of this investment would by approximately 15.1%, which is greater than the 10% required rate of return. Therefore, building the factory would be a good idea.

Your total rate of return includes your cash flow plus equity. When investing in real estate, your return on investment (ROI) is equal to the property's cash flow, which is its income minus expenses, ...

Calculating the internal rate of return, or IRR, of an investment is a powerful tool for businesses. When a manager is faced with a capital intensive decision, IRR can quickly compare the financial ...