5. IRR (S5.3) Write down the equation defining a projects internal rate of return (IRR). In practice,

Question:

5. IRR (S5.3) Write down the equation defining a project’s internal rate of return (IRR). In practice, how is IRR calculated?

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For a survey of capital budgeting procedures, see:

J. Graham and C. Harvey, “How Do CFOs Make Capital Budgeting and Capital Structure Decisions?”

Journal of Applied Corporate Finance 15 (Spring 2002), pp. 8–23.

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FURTHER READING Chapter 5 Net Present Value and Other Investment Criteria 141

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