internal rate of return (irr)

What are the Advantages of Using IRR?

IRR offers several benefits for businesses, including:
Simple interpretation: IRR provides a single percentage figure that is easy to understand and compare with other investments.
Time value of money: It accounts for the time value of money, ensuring that future cash flows are appropriately discounted.
Benchmarking: IRR serves as a benchmark for evaluating the required rate of return on investments.

Frequently asked queries:

What is Internal Rate of Return (IRR)?
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