Tag: Internal Rate of Return

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Steps in Calculating Internal Rate of Return (IRR)

The internal rate of return (IRR) is a formula for estimating the rate of return on investment. The computation does not take into account external variables like the risk-free rate, inflation, the cost of capital, or financial risk, hence the name is “internal”. Ex-post or ex-ante applications of the approach are both possible. The IRR … Continued

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