The Internal Rate of Return (IRR) Is the discount rate at which an investments NPV equals

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The Internal Rate of Return (IRR)

• Is the discount rate at which an investment’s NPV equals zero.

• Is the rate at which money retained in the investment is growing.

• Is a breakeven rate, meaning that in most instances an investment should be undertaken whenever its IRR exceeds the discount rate, and vice versa.

• Is a close cousin of the NPV and in most circumstances a valid figure of merit.

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Analysis For Financial Management

ISBN: 9781260772364

13th Edition

Authors: Robert Higgins, Jennifer Koski, Todd Mitton

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Question Posted: Jul 23, 2024 11:02 AM

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The Internal Rate of Return (IRR) Is the discount rate at which an investments NPV equals

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Analysis For Financial Management

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