razman3n
1 Answer
Colleen
Internal rate of return (IRR)
The discount rate often used in capital budgeting that makes the net present value of all cash flows from a particular project equal to zero. Generally speaking, the higher a project's internal rate of return, the more desirable it is to undertake the project. As such, IRR can be used to rank several prospective projects a firm is considering. Assuming all other factors are equal among the various projects, the project with the highest IRR would probably be considered the best and undertaken first. http://www.investopedia.com/terms/i/irr.asp
| 12 years ago. Rating: 4 | |
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