# Internal Rate of Return

Internal Rate of Return is the reduction rates frequently used in capital budgeting that creates the net present value of the entire cash flows from an exacting project equivalent to zero. Usually speaking, the superior a project’s internal rate of return, and the additional attractive it is to take on the project.

As the name indicates the internal rate of return method indicates the rate of return associated with the project. This is the rate of return that an investor can expect to be returned from the project. In other words the internal rate of return

Yield Definition: A term synonymous with internal rate of return and time-adjusted rate of return. Recommended Books ! Or Download E accounting book in MS-word format for just 20 $ - Click here to Download

Internal Rate of Return (IRR) Method in Capital Budgeting Decisions: Learning Objectives: Define and explain the internal rate of return (IRR) in Accounting. Evaluate the acceptability of an investment project using the internal rate of return (IRR) method. What are the advantages and disadvantages

Net Present Value (NPV) Method Versus Internal Rate of Return (IRR) Method Learning Objectives: What is the difference between net present value (NPV) method and internal rate of return (IRR) method? The net present value (NPV) method has several important advantages over the internal