Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
   Internal rate of returns is that rate at    which the sum of discounted cash inflow    equals the sum of discounted ca...
   The acceptance and rejection is done on    the basis of the IRR rate.
NPV                            IRRa) It take interest as a known a) It take interest as a-factor                          ...
   The project require different cash outlay.   The project have unequal lives.   The project have different pattern of...
   Consider the time value of money.   Take the amount of expenses &revenue.   Gives more value to the present money va...
Internal rate of return(IRR)
Upcoming SlideShare
Loading in …5
×

Internal rate of return(IRR)

12,547 views

Published on

Internal rate of returns is that rate at which the sum of discounted cash inflow equals the sum of discounted cash outflow

Published in: Business, Economy & Finance
  • Here you can clarify your doubts: http://projectsefficiency.com/
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Internal rate of return(IRR)

  1. 1.  Internal rate of returns is that rate at which the sum of discounted cash inflow equals the sum of discounted cash outflow. In other words it is the rate which discounts the cash flow to zero.
  2. 2.  The acceptance and rejection is done on the basis of the IRR rate.
  3. 3. NPV IRRa) It take interest as a known a) It take interest as a-factor unknown factorb) It calculates the exact b) It calculates maximum amt. of investment rate of interest
  4. 4.  The project require different cash outlay. The project have unequal lives. The project have different pattern of cash flows.
  5. 5.  Consider the time value of money. Take the amount of expenses &revenue. Gives more value to the present money value. It is very difficult. Reinvestment presumption.

×