In this article, we're going to talk about the incremental internal rate of return. so the reason we need an incremental in IRR is that let's say we had a situation where we had a cost of capital of 8% and we have 2 different projects o…
I mentioned in some of our previous articles how net present value is superior to the payback method when it comes to evaluating whether or not to accept a project. People generally just use the payback rule because it's simplicity and then…
In this article, we're going to talk about how to use the payback method when the payback period is not an integer. For example, let's say it's 2.4 years or 2.7 years something like that so let's jump into an example let's say t…
In this article, we're going to talk about the payback method which is a means of evaluating investment opportunities and whether or not to accept a project. So the first step with the payback method is we're going to calculate the payback p…
The internal rate of return is a very useful decision rule in deciding whether or not to accept a project or a firm but in some cases, we don't even have an IRR. It's non-existent, There is no IRR for the cash flows of a given project an…
The internal rate of return is a really useful tool in deciding whether or not to accept a project for a firm but in some cases, you actually end up where you have multiple IRRs. So you might have an IRR of 10% and 21% and then maybe one of -7% …
Although the internal rate of return is a very valuable tool in terms of evaluating whether or not to take on a project, in some cases for example: When you have a delayed investment IRR will break down and fail and you're better off using net …
In this article, I'm going to be talking about IRR otherwise known as the Internal Rate of Return . Now the internal rate of return is a way of evaluating a project and coming up with a decision to accept or reject that project. So this is ve…
