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Economic Internal Rate of Return or "EIRR" includes all financial benefits of a projects and non financial benefits (for example CO2 savings, decreased health care interventions, reduced traffic and many other benefits that a project can have on the observed area) of a project expressed with a monetary unit.

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10y ago
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10y ago

Shortly: FIRR considers only financial - so "internal" - costs and benefits of the project in question. To be used by private sector. While EIRR considers also "external" - so social, environmental etc. - outcomes and costs of the project. To be used mainly by public sector.

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Q: What is the diffference between an economic internal rate of return - EIRR - and a financial internal rate of return - FIRR?
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