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Q: Why calculation of IRR after CFAT is important?
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Continue Learning about Math & Arithmetic

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.


Why was pi found?

I did not know it was lost! It is very important for the calculation of the area of a circle and such calculations were important to the ancient geometers (people who measured land/earth).


How old if you were born in 1923?

If you were born in 1923, you would be 99 years old in 2022. This calculation is based on the current year minus the birth year. It is important to note that this calculation assumes that the individual has not had their birthday yet this year.