What is "IRR"?
What is "IRR"?
(OP)
I have come across an email that talks about IRR for projects. I know it is an economic term-is it "internal rate of return"?
When was the last time you drove down the highway without seeing a commercial truck hauling goods?
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RE: What is "IRR"?
Internal Rate of Return
(This is more related to economics)
and technical:
Infrared Radiation
Ifrared Reflectography
Etc.
RE: What is "IRR"?
RE: What is "IRR"?
RE: What is "IRR"?
Naturally, the accountants will not tell you how they work this out - otherwise they won't be able to bamboozle you into not having your project funds !!
Seriously, there is an IRR function in MS Excel, that explains in simple terms what it is used for.
RE: What is "IRR"?
Thanks.
They are tough with handing out the cash, aren't they?!
I don't blame them.
RE: What is "IRR"?
http://search.netscape.com/ns/boomframe.jsp?query=%22IRR%22+%2B+%22MS+Excel%22&page=1&offset=1&result_url=redir%3Fsrc%3Dwebsearch%26amp%3BrequestId%3D570f368504952feb%26amp%3BclickedItemRank%3D2%26amp%3BuserQuery%3D%2522IRR%2522%2B%252B%2B%2522MS%2BExcel%2522%26amp%3BclickedItemURN%3Dhttp%253A%252F%252Fwww.doane.edu%252Fcrete%252Facademic%252Fscience%252Fist%252Ftaponline%252Fadexcel%252Fexcel.htm%26amp%3BinvocationType%3D-%26amp%3BfromPage%3DNSCPResults&remove_url=http%3A%2F%2Fwww.doane.edu%2Fcrete%2Facademic%2Fscience%2Fist%2Ftaponline%2Fadexcel%2Fexcel.htm
for:
Using IRR (internal rate of return)
etc. for more info
RE: What is "IRR"?
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RE: What is "IRR"?
IRR is defined by the equation:
NPV(C, t, IRR) = 0
where,
N
NPV(C, t, d) = Sum C[i]/(1+d)^t[i]
i=0
C[i] is the i-th cash flow (C[0] is the first, C[N] is the last).
d is the assumed discount rate.
t[i] is the time between the first cash flow and the i-th. Obviously, t[0]=0 and t[N]=the length of time under consideration. Pick whatever units of time you like, but remember that IRR will end up being rate of return per chosen time unit.
See
http://www.investopedia.com/offsite.asp?URL=http://invest-faq.com/articles/analy-int-rate-return.html
RE: What is "IRR"?
Reference:
Donald G. Fink, H. Wayne Beaty "Standard Handbook for Electrical Engineers," 13th Edition, McGraw-Hill, Inc., 1993.
3. Decision Criteria. Page 13-3
RE: What is "IRR"?