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31 August 2010 Can any one give me a clear concept of internal rate of return ?
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sudhakar ca cwa

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sudhakar ca cwa (Expert)
31 August 2010 internal rate of return is the minimem rate of return we can execpting from the project.

if IRR is more than cost of capital then we can accept that project
here in simple terms
IRR = RETURN / PROFIT
COC = Cost
(only for ur understanding purpose i am giving these definitions)
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Manmohan ACA, CS

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Manmohan ACA, CS (Expert)
31 August 2010 In one line

IRR is a rate at which NPV is zero
so you should accept a project if
IRR> Cost of capital
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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
31 August 2010 IRR is the rate at which you are getting present value of future cash flows back against what you are investment will be equal

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