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A high Internal Rate of Return (IRR) indicates that an investment is expected to generate significant returns relative to its cost. It signifies that the investment will be profitable and potentially lucrative. However, a very high IRR may also imply a higher level of risk or uncertainty associated with the investment.
What else can I help you with?
What will happen if the Gas is kept at low temperature and high pressure?
At low temperature and high pressure, the VOLUME of the gas will be reduced.
What would happen if actin were damaged or not present?
We would die. Just die. Cause muscles wouldn't function without actin. I think. So yeah. Spoken as a high school biology student
What happen when a bear high tides come in?
They eat all of the food they can get. They also hide
Is there a safe place for when tsunamis happen?
Yes. The best thing to go is to get to high ground.
Does the point on earth farthest from the moon has a high tide?
Yes. High tides happen on the point on earth closest to the moon, and the opposite side of the earth.
What is ungeared IRR?
irr after interest
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.
How tall is Tim Irr?
Tim Irr is 6' 1 1/2".
What are the disadvantages of IRR method?
In the IRR method, the intermediate cash inflows are assumed to be consumed and so are not reinvested. The unmodified IRR method, as compared with the NPV method, will not show the superiority of any two mutually exclusive investments with two different initial outlays. In such a case, an investment with lower IRR could have a higher NPV and therefore should be chosen by an investor. In some cases where there are streams of positive and negative cash flows in an investment, the IRR method may yield more than one IRR. This is not a disadvantage if the calculations are performed correctly.
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.
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 relationship between irr and net profit percent. is it necessary that irr should always be more than np percent?
IRR stands for internal rate of return and it is calculated based upon a series of cash flows over time. The discount rate that yields an NPV (net present value) of zero is the IRR. IRR is used in capital budgeting and investment analysis to assess the return over time from an investment made. Net profit percent is an accounting measure that is calculated based upon one year or time period and it typically is net profit divided by sales or revenue. So the short answer is that there is no direct relationship between irr and np percent.
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?
What does the prefix irr mean?
The prefix "irr" typically means not or without, suggesting a lack of correctness or regularity in the word it precedes.
How does a change in cost of capital affect the IRR?
The Internal Rate of Return (IRR) is the discount rate that makes the net present value (NPV) of a project zero. A change in the cost of capital does not directly affect the IRR itself, as IRR is a project-specific metric; however, it influences the decision-making process. If the cost of capital rises above the IRR, the project may be deemed less attractive, as it suggests that the project's returns do not meet the required threshold. Conversely, if the cost of capital is below the IRR, the project is generally considered favorable.
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.
