假设贴现率是10%，那么换算成现在的钱也就是110/(1+10%)=100元，也就是说你明年赚到的110元就相...
IRR can be thought of as the forecast return for the project. If the IRR is greater than target, the project is accepted. If the IRR is less than the target, the project is rejected. IRR的计算方法是这样的: 取两个不同的dicsount rate,进而得出两个(最好是)一正一负的NPV,取两个不同的d...
As shown above in year 1 our outstanding investment amount is $100,000, which earns a return on investment of 10% or $10,000. However, our total interim cash flow in year 1 is $15,000, which is $5,000 greater than our $10,000 return “on” investment. That means in year 1 we...
-500 + 100/(1+IRR) + 200/(1+IRR)^2 + 300/(1+IRR)^3 vs 5% 计算得到 IRR约为8% >5%,该笔投资值得。 从另一个角度看,这笔投资3年后累计现金流为+100万元,如果买3年期利率为5%的国债,则累计现金流为 500×(1+5%)^3-500=78.8125(万元) < 100(万元) 二...
If rate x/12 is applied every month, total compounded interest for a year would be (1+x/12)12, which is greater than 1+x for any positive x.For example if you have a "6%" mortgage this means monthly rate of 0.5%. Compounded yearly rate would be 1.00512 = 1.0617, or 6.17%. ...
内部收益率 (IRR) 的定义是：净现值 (NPV) 为零时的折现率。直观一点来说，如果我们做一个图，纵坐标是净现值 (NPV) ，横坐标是相应的折现率 (discount rate) 。那么 IRR 就是图中所有与横轴相交的点。比如说：现在投资2000元，明年收获3000元的项目。在这幅图中，与横轴相交的点为0.5；即 IRR = 50%...
of return on the company’s various sources of capital.If a firm’sROIC is greater than its ...
Product A requires a larger initial investment than Product B. However the expected cash flows between the two also differ. Using the IRR, we can see which will have a greater annual growth rate, showing which will meet its break even point quicker. Here are the details for Product A: ...
IRR may also be compared against prevailing rates of return in thesecuritiesmarket. If a firm can’t find any projects with an IRR greater than the returns that can be generated in the financial markets, then it may simply choose to invest money in the market. Market returns can also be ...
The IRR results in Excel or Google Sheets represent the annual rate of return for a project or investment. If the IRR is greater than the required rate of return (or the cost of capital), the project is considered profitable. However, if the IRR is lower than the required rate of ...