Internal rate of return (IRR)
The internal rate of return (IRR) is the discounted rate that equate an investment initial cost with its future earnings. in another word, when discounted at IRR the present value of cash outflow minus the present value of cash outflow equal zero.
IRR = i rate, where PV (cash outflow) = PV (cash inflow)
discount rate is the rate that used to calculate the present value of cash inflows and outflows in the evaluation of an investment or project.
The internal rate of return (IRR) is the discounted rate that equate an investment initial cost with its future earnings. in another word, when discounted at IRR the present value of cash outflow minus the present value of cash outflow equal zero.
IRR = i rate, where PV (cash outflow) = PV (cash inflow)
discount rate is the rate that used to calculate the present value of cash inflows and outflows in the evaluation of an investment or project.