Discover how to calculate internal rate of return (IRR) to evaluate investment opportunities and understand their potential returns.
I will discuss in more detail how IRR works and why investors must be careful not to view the metric as an equivalent measure to infer investment rates of return. IRR is a discount rate. It is the ...
IRR measures the rate needed to break even on an investment. Calculate IRR by setting NPV to zero and solving for the discount rate. Use Excel's IRR function by inputting initial cost and cash inflow.
This article was written by Paul J. Davies. It appeared first on the Bloomberg Terminal. There are lies, damned lies and statistics – and then there’s IRR. The internal rate of return metric used by ...
MIRR is just like a net present value calculation. You need to choose discount rates, which is effectively the same as choosing financing and reinvestment rates. IRR is a discount rate used to make ...