Internal Rate of Return

JillM

Hello

I'm new to this forum and would like someone to explain what is Internal Rate of Return in simple terms please.

Many thanks

:confused1:

Caster1

Irr

Hi JillM,

I'm a newbie, too. It's nice to correspond with a fellow novice.

The Internal Rate of Return is the percentage of payback for a Capital Project/Purchase that results in the Net Present Value being zero - this is the textbook answer. It tells me that we don't need to know more than that at Intermediate Level, as the calculations are mind-bendingly complex! Have you covered Capital Appraisal yet?

SandyHood

Try
http://www.aat.org.uk/forums/showthread.php?t=16431