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Q: Why calculation of IRR after CFAT is important?
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What is ungeared IRR?

irr after interest


How tall is Tim Irr?

Tim Irr is 6' 1 1/2".


Why is the IRR not the MIRR the industry standard rate of return?

The IRR assumes all cash flows are reinvested at the IRR. All you need are the property cash flows and the initial outlay to solve the equation. So, it is a simple and objective calculation. For reference, the calculation is as follows: NPV = 0 = CF0/(1+IRR)^0 + CF1/(1+IRR)^1 + ... + CFn/(1+IRR)^n The MIRR assumes that positive cash flows are reinvested at a reinvestment rate. MIRR also assumes that negative cash flows are financed by the company at a finance rate. For reference the calculation is as follows: (( NPV of positive cash flows at reinvestment rate ) / ( NPV of negative cash flows at finance rate ))^(1/(n-1) - 1 This makes MIRR unsuitable as an industry standard. First, different firms have different reinvestment rates and different finance rates. So, MIRR cannot be used to compare investments purchased or sold by different companies. Second, the rates will change over time, thus making it impossible to compare MIRR's at different intervals. MIRR is best used internally by a particular firm choosing between several investments at a given time.


Additivity property of IRR?

You should not be ADDICTED to property of IRR anyways!!stop it!! well you cant...


Calculation of internal rate of return?

Internal Rate of Return (IRR) Calculator Use this calculator to determine the annual return of a known initial amount, a stream of deposits, plus a known final future value.


When was Christopher Irr born?

Christopher Irr was born on September 13, 1984, in Portsmouth, Virginia, USA.


What is IRR reinvestment rate assumption?

The IRR reinvestment rate assumption is the mistaken assumption that the IRR of a project implicitly assumes that all positive cash flows from the project that occur in periods before the end of the project will be reinvested at the rate of IRR per period until the end of the project.


What is the effect on IRR if cost of capital decreased?

A change in the cost of capital will not, typically, impact on the IRR. IRR is measure of the annualised effective interest rate, or discount rate, required for the net present values of a stream of cash flows to equal zero. The IRR will not be affected by the cost of capital; instead you should compare the IRR to the cost of capital when making investment decisions. If the IRR is higher than the cost of capital the project/investment should be viable (i.e. should have a positive net present value - NPV). If the IRR is lower than the cost of capital it should not be undertaken. So, whilst a higher cost of capital will not change the IRR it will lead to fewer investment decisions being acceptable when using IRR as the method of assessing those investment decisions.


Why is the NPV approach often regarded to be superior to the IRR method?

Why is the NPV approach often regarded to be superior to the IRR method?


What does the prefix irr mean?

The prefix "irr" typically means not or without, suggesting a lack of correctness or regularity in the word it precedes.


IRR VS NPV?

IRR: Internal rate return NPV: Net present value Both are measure of the viability of a project(s) You can have multiple IRR (because of discontinued cash flows) but you always have one NPV.


Distinguish between IRR and ARR method in capital budgeting?

arr is for 1year only..irr can be for a period of 1 or more years