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You need to calculte the cash flow of the project to the present, compare to 0 and solve the equation :
(I0/(1+X))+(PMT1/(1+X2)+..+(PMTn/(1+Xn)=0Where I = Investment, PMT = Payment each period, X = The equation to solve)
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What happens if the IRR is greater than the required rate of return?
The IRR rule states that if the internal rate of return (IRR) on a project or investment is greater than the minimum required rate of return - the cost of capital - then the decision would generally be to go ahead with it. Conversely, if the IRR on a project or investment is lower than the cost of capital, then the best course of action may be to reject it.
What is the difference between IRR and Average Rte of Return?
IRR is Investment Rate of Return, it simply gives a time period of single project of investment to be returned.Average IRR is considered by taking the average of all the previous IRRs and then concluding the answer as as an average of all the previous investments returned and in what time?
What is meant by the abbreviation of IRR?
IRR is an abbreviation for the economics term internal rate of return. This is the interest rate compared to the expected profit of project or venture. An IRR is weighed against the cost of capital involved in the venture to determine the feasibility of said venture.
What is the formula to find BV of Equity Acquired?
Formula to Find the Equity
The formula length width height is a general formula to find?
The formula "length x width x height" is a general formula to find VOLUME?
