Asked by
Aishwarya Badoni
on Oct 23, 2024Verified
The internal rate of return is a capital budgeting method that calculates a discount rate at which the net present value of the project is always positive.
Net Present Value
A financial metric that calculates the present value of an investment's expected cash flows minus the initial investment cost.
Internal Rate of Return
The discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.
- Master the techniques for analyzing and ordering investment projects utilizing financial metrics such as net present value (NPV), internal rate of return (IRR), and profitability indexes.
Verified Answer
GB
Learning Objectives
- Master the techniques for analyzing and ordering investment projects utilizing financial metrics such as net present value (NPV), internal rate of return (IRR), and profitability indexes.
Related questions
Which Is the Optimal Technique or Rule for Ranking Investment ...
When Assessing Three Projects with Profitability Indexes of 1 ...
The Profitability Index Is a Tool for Ranking Investment Proposals
Which of the Following Costs Would Not Be Included in ...
Some Investment Projects Require That a Company Increase Its Working ...