Internal Rate of Return
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Rune
Registered Posts: 91 Regular contributor ⭐
:huh: Help!!
I know that's to do with the npv being calculated to zero using the irr, But how do I explain it in english?
I know that's to do with the npv being calculated to zero using the irr, But how do I explain it in english?
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Comments
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The way to view this is to say that the internal rate of return is the discount rate that when applied to the cash inflows of the asset the total of these discounted inflows equals the cash outflows i.e. it is the rate of return that produces a zero net present value.
Kind regards
Steve0 -
Thanks Steve
Much appreciated, now all I have to do is to get my head around the FRA exam style, the skills test was much easier!
Kind regards
Stella0
