What Is IRR And How Do Companies Use It?

Management’s main goal is creating shareholder value. Achieving this requires capital budgeting decisions that give positive expected returns, also known as the Internal Rate Of Return (IRR). Calculation of IRR Interestingly enough, calculation of internal rate of return first requires the formula for Net Present Value (NPV) of a project. When we refer to “project” … Continue reading "What Is IRR And How Do Companies Use It?"

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