Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

internal rate of return?

Narendra Varma (30 Points)

10 March 2019

what is internal rate of return?how it is useful?

Reply
Follow
Share

2 Replies

Hitesh (Student) (3549 Points)
Replied 10 March 2019

The internal rate of return (IRR) is a measure of an investment’s rate of return. The term internal refers to the fact that the internal rate excludes external factors, such as inflation, the cost of capital, or various financial risks

Corporations use IRR in capital budgeting to compare the profitability of capital projects in terms of the rate of return

Upgrade to CAclubindia Pro. Subscribe Now!

piyush jain (27 Points)
Replied 16 April 2019

Originally posted by : Hitesh
	The internal rate of return (IRR) is a measure of an investment’s rate of return. The term internal refers to the fact that the internal rate excludes external factors, such as inflation, the cost of capital, or various financial risksCorporations use IRR in capital budgeting to compare the profitability of capital projects in terms of the rate of return