Irr

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Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2013 Can anyone tell me the concept of IRR?

CA Harish Suwalka

CA Harish Suwalka (Expert)
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13 July 2013 IRR. The rate of return that would make the present value of future cash flows plus the final market value of an investment or business opportunity equal the current market price of the investment or opportunity. The internal rate of return is an important calculation used frequently to determine if a given investment is worthwhile. An investment is generally considered worthwhile if the internal rate of return is greater than the return of an average similar investment opportunity, or if it is greater than the cost of capital of the opportunity. also called dollar-weighted rate of return.

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2013 can you please explain with the help of an example ?

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CMA.Baskar.V

CMA.Baskar.V (Expert)
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19 November 2013 Internal Rate of Return – The Rate of Return by a project, to make equal amount of investment value with time value
In NPV method, we have taken inflation Rate to evaluate the project cash inflow
In IRR in reverse way, we are considering Cash inflow from project, what is the Rate of Return of project.