Internal Rate of Return

JillM Registered Posts: 2 New contributor 🐸

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

Many thanks



  • Caster1
    Caster1 Registered Posts: 2 New contributor 🐸

    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
    SandyHood Registered, Moderator Posts: 2,034
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