In a calculation of the internal rate of return of a project it is found that the
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In a calculation of the internal rate of return of a project it is found that the net present value is +£60m at 24% discount rate and −£20m at 26% discount rate. What is the Internal Rate of Return?
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Dudhat Vaidehi
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Related Book For
Financial And Management Accounting An Introduction
ISBN: 9781292244419
8th Edition
Authors: Pauline Weetman
Question Posted:
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Internal rate of return is a method of calculating an investment’s rate of return. The term internal refers to the fact that the calculation excludes external factors, such as the risk-free rate, inflation, the cost of capital, or financial risk.
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