Internal rate of return (IRR) is a capital budgeting measurement used by companies to determine the profitability of a potential investment or project based on predicted cashflows. The IRR formula is ...

Capital budgeting encompasses the methods and techniques used by firms to evaluate long‐term investment projects and allocate resources effectively. Traditionally, discounted cash flow (DCF) ...

IRR calculates a project's average expected return by setting NPV to zero. Excel's XIRR function can compute project IRRs to help select profitable options. IRR overlooks cash flow accuracy and other ...

Calculating the internal rate of return, or IRR, of an investment is a powerful tool for businesses. When a manager is faced with a capital intensive decision, IRR can quickly compare the financial ...

Capital budgeting is the evaluation and selection of long-term investments on the basis of their costs and potential returns. The process provides a framework for formulating and implementing the ...

Determine the net present value (NPV), internal rate of return (IRR), and payback periods (PBP) of a series of cash flows using spreadsheet analysis Apply NPV, IRR, and PBP criteria to evaluate an ...

Forbes contributors publish independent expert analyses and insights. Bernie Kent, J.D., CPA, PFS covers taxes and investments. This article is more than 3 years old. Time weighted rate of return and ...

When evaluating potential capital investments by your small business in various projects, the Internal Rate of Return, or IRR, can be a valuable tool in assessing the projects most worth pursuing. IRR ...

Capital expense (CapEx) budgeting is frequently misunderstood and disregarded by many organizations. A capital expense, at its core, refers to a significant, long-term investment undertaken by a ...

Rey Adams is an economist and writer. He has 15+ years of professional experience in investment management and consulting. David Kindness is a Certified Public Accountant (CPA) and an expert in the ...