Acceptance rule of irr, Finance Basics

Acceptance Rule of IRR

IRR will accept a venture if its IRR is higher than or equivalent to the minimum required rate of return such is usually the cost of finance also recognized as the cut off rate or hurdle rate, and in this case IRR will be the highest rate of interest a firm would be prepared to pay to finance a project by borrowed funds and without being financially worse off with paying back the loan or the principal and accrued interest so out of the cash flows generated with that project.  Hence, IRR is the break-even rate of borrowing from commercial banks.

Posted Date: 1/31/2013 1:05:34 AM | Location : United States







Related Discussions:- Acceptance rule of irr, Assignment Help, Ask Question on Acceptance rule of irr, Get Answer, Expert's Help, Acceptance rule of irr Discussions

Write discussion on Acceptance rule of irr
Your posts are moderated
Related Questions

Long Term Lenders - Measuring Business Performance Long term lenders These involve finances with loans, mortgages and debenture holders.  These have both short and long

why i cant found date for mmmfs like total asset or number of share or return ???? i search alot and i found words instead of number

the two problems below (P1 and P2). Five marks each. Part marks will be allocated, but if you have the incorrect answer then you cannot expect to get more than half marks. Project

How is finance related to the disciplines of accounting and economics? Financial management is necessarily a combination of economics and accounting. First, financial managers

Lock-Box System In a lock-box system, the customer sent the payments to a post office box. The post office box is emptied with the firm's bank at minimum once or twice all bus

AsStudents will analyze and synthesize the financial reports of an organization of their choice and present their findings in a PowerPoint presentation (with completed Notes sectio

Example of Net Present Value Method Cost of investment = 100,000/=, Interest rate = 10percent, Inflows year 1 = 80,000/= Year 2 = 50,000/= NPV   = 80,000 / 1.1 + 5

Acceptance Rule of Payback Period or PBP By using PBP method a company such will accept all those ventures whose payback period is less than to set via the management and will

Eye Field - Vertebrate Eye The development of eyes starts with evagination of the lateral wall of the forebrain. one on each side, which make the optic vesicles. By vital dye