Hi everybody,
Can somebody explain the meaning of Equity IRR in Capital Budgeting. ?
What is the difference between Project IRR & Equity IRR ?
How do you calculate Equity IRR ?
Thanks and best regards,
Sumanta.
Sumanta Das Gupta (Accountant) (310 Points)
29 January 2012Hi everybody,
Can somebody explain the meaning of Equity IRR in Capital Budgeting. ?
What is the difference between Project IRR & Equity IRR ?
How do you calculate Equity IRR ?
Thanks and best regards,
Sumanta.
RaGHuRaM
(The Easy are never Good and the Good are never Easy....)
(4952 Points)
Replied 30 January 2012
Hi, Sumanta.
IRR which is calculated considering the Cost of Equity as discounting rate is known as Equity IRR.
Project IRR is calculated based on WACC.
Regards
Raghuram