235internal-rate-of-return-irrxx council and applications : Internal Rate of Return (IRR) with Credit On Line
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Internal Rate of Return (IRR) :

The internal rate of return (IRR) is a capital budgeting method used by firms to decide whether they should make long term investments. The IRR is defined as any discount rate that results in a net present value of zero, and is usually interpreted as the expected return generated by the investment. In general, if the IRR is greater than the project's cost of capital or hurdle rate, the project will add value for the company.



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