Golgappa.net | Golgappa.org | BagIndia.net | BodyIndia.Com | CabIndia.net | CarsBikes.net | CarsBikes.org | CashIndia.net | ConsumerIndia.net | CookingIndia.net | DataIndia.net | DealIndia.net | EmailIndia.net | FirstTablet.com | FirstTourist.com | ForsaleIndia.net | IndiaBody.Com | IndiaCab.net | IndiaCash.net | IndiaModel.net | KidForum.net | OfficeIndia.net | PaysIndia.com | RestaurantIndia.net | RestaurantsIndia.net | SaleForum.net | SellForum.net | SoldIndia.com | StarIndia.net | TomatoCab.com | TomatoCabs.com | TownIndia.com
Interested to Buy Any Domain ? << Click Here >> for more details...


example irr



example irr..

Answer / prasanna

The internal rate of return (IRR) is a capital budgeting
metric used by firms to decide whether they should make
investments. It is an indicator of the efficiency of an
investment, as opposed to net present value (NPV), which
indicates value or magnitude.

The IRR is the annualized effective compounded return rate
which can be earned on the invested capital, i.e., the
yield on the investment.

A project is a good investment proposition if its IRR is
greater than the rate of return that could be earned by
alternate investments (investing in other projects, buying
bonds, even putting the money in a bank account). Thus, the
IRR should be compared to any alternate costs of capital
including an appropriate risk premium.

Mathematically the IRR is defined as any discount rate that
results in a net present value of zero of a series of cash
flows.

In general, if the IRR is greater than the project's cost
of capital, or hurdle rate, the project will add value for
the company.

Is This Answer Correct ?    2 Yes 1 No

Post New Answer

More Accounting AllOther Interview Questions

What is the Accounting Treatment for Contingent Liability ?

3 Answers  


Expand ________CBC

2 Answers  


the following figures given to you: 2008-09 Sales Rs.100000 Loss 10000. 2009-10 Sales Rs.250000 Profit 20000 Calculate: P/V Ratio, BEP, Sales to make a profit of Rs.40000, Margin of safety at at profit of Rs.2000

1 Answers  


expand--------DRS

2 Answers  


if average inventories is 12000. closing stock is 3000 more than opening stock. then what's is the closing stock?

2 Answers  


If I purchased a machinary of Rs. 50,000 and Received a free printer of Rs. 3000 . What its Accounting entry?

15 Answers  


define inventory

9 Answers   Genpact,


When Trial Balance match?

5 Answers  


Journal entries if the following line items are given as adjustment in balance sheet and p l a/c Fire accident of inventory Case 1. No insurance coverage Case 2.partly insurance coverage Case 3. Fully insurance coverage

5 Answers   Capital IQ,


Contra entry with example?

40 Answers   Industrial Power Supplies, PVS Advertising,


Difference between post date and value date?

3 Answers   CitiGroup,


define p&l approprate

2 Answers   Genpact,


Categories