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What is a deficiency in the irr?
It could produce more than one rate of return
What is ungeared IRR?
irr after interest
What is the difference between IRR and Average Rte of Return?
IRR is Investment Rate of Return, it simply gives a time period of single project of investment to be returned.Average IRR is considered by taking the average of all the previous IRRs and then concluding the answer as as an average of all the previous investments returned and in what time?
How tall is Tim Irr?
Tim Irr is 6' 1 1/2".
Additivity property of IRR?
You should not be ADDICTED to property of IRR anyways!!stop it!! well you cant...
When was Christopher Irr born?
Christopher Irr was born on September 13, 1984, in Portsmouth, Virginia, USA.
How does a change in the required rate of return affect project's Internal Rate Of Return?
A change in the required rate of return will affect a project's Internal Rate of Return (IRR) by potentially shifting the project's feasibility. If the required rate of return increases, the project's IRR needs to be higher to be considered acceptable. Conversely, a decrease in the required rate of return could make the project's IRR more attractive.
What is IRR reinvestment rate assumption?
The IRR reinvestment rate assumption is the mistaken assumption that the IRR of a project implicitly assumes that all positive cash flows from the project that occur in periods before the end of the project will be reinvested at the rate of IRR per period until the end of the project.
What is the effect on IRR if cost of capital decreased?
A change in the cost of capital will not, typically, impact on the IRR. IRR is measure of the annualised effective interest rate, or discount rate, required for the net present values of a stream of cash flows to equal zero. The IRR will not be affected by the cost of capital; instead you should compare the IRR to the cost of capital when making investment decisions. If the IRR is higher than the cost of capital the project/investment should be viable (i.e. should have a positive net present value - NPV). If the IRR is lower than the cost of capital it should not be undertaken. So, whilst a higher cost of capital will not change the IRR it will lead to fewer investment decisions being acceptable when using IRR as the method of assessing those investment decisions.
Why is the NPV approach often regarded to be superior to the IRR method?
Why is the NPV approach often regarded to be superior to the IRR method?
IRR VS NPV?
IRR: Internal rate return NPV: Net present value Both are measure of the viability of a project(s) You can have multiple IRR (because of discontinued cash flows) but you always have one NPV.
Distinguish between IRR and ARR method in capital budgeting?
arr is for 1year only..irr can be for a period of 1 or more years
