Internal rate of return, Financial Management

Internal Rate of Return

The discount rate at which the net current value (the value of all future cash flows, in excess of the real investment, expressed  in today's dollars) of an investment equals to zero. Internal rate of return is frequently used by financial managers to decide whether to commit to an investment. In most cases, an investment opportunity is accepted when the internal rate of return is greater than the opportunity cost (the projected return on an investment of similar risk) of the capital needed for the investment. The profit percentage earned on a proposed investment once all costs are considered for a specific period of time.

Posted Date: 10/17/2012 2:43:15 AM | Location : United States







Related Discussions:- Internal rate of return, Assignment Help, Ask Question on Internal rate of return, Get Answer, Expert's Help, Internal rate of return Discussions

Write discussion on Internal rate of return
Your posts are moderated
Related Questions
Q. Define Double-Entry Bookkeeping? Double-Entry Bookkeeping - Method of recording financial transactions in that every transaction is entered in two or more accounts and inclu

Your family purchased a house three years ago. When you bought the house you financed it with a $160,000 mortgage with an 8.5% nominal interest rate (compounded monthly). The mortg

Company X is expected to maintain a constant 7% growth rate in their dividends, indefinitely. If company X has a dividend yield of 4%, what is the required return on their shares?

I am facing some problems in my assignment of Portfolio Management. Can anybody suggest me the proper explanation for it?

Q. Describe Concepts of finance function ? 1) The finance function in the business task in the providing funds needed by the enterprises on the term that one most favorable in

Consider that you are deciding whether to undertake one of two projects. Project A involves buying expensive machinery which will produce a better product at a lower cost. The mach

Net Income approach says that a raise in the proportion of debt financing in capital structure results in an increase in the proportion of a cheaper source of funds. This in turn r

Debenture A kind of debt instrument that is not secured by physical any asset or collateral is known as debenture. Debentures are backed by the general creditworthiness and sta

Market price is used for determining the duration of a mortgage-backed security in the coupon curve duration. This approach to calculate the duration of mortgage-bac

Problem: 1.1 Clearly explain the costs and benefits of being a small and remote island or a ministate economy. 1.2 Over the years, the role of government has been defined al