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Internal Rate of Return (IRR)

The internal rate of return is a financial tool for investment analysis and the cost loan evaluation. It represents the discount rate that equates to zero the present value of a discounted cash flow.
For an investment, the investor sees three possibilities for the IRR:
a) IRR greater than the opportunity cost rate - satisfactory project (profitable);
b) IRR equal to the opportunity cost rate- indifferent project (no profit or loss);
c) IRR less than the opportunity cost rate - unsatisfactory project (loss).
The opportunity cost is the interest rate of the best return on an investment alternative.
For more consistent results and meet various cash flow models can be used another version of the internal rate of return called: Modified Internal Rate of Return (MIRR).
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To calculate the internal rates of return enter values in chronological order of events, separated by commas. The first element or disbursement should be written with negative sign. Use the point as decimal separator. Ex. For the number 25,152.47, enter 25152.47; The results are automatically displayed after the click on "Calculate" after a click on "Calculate".

Internal Rate of Return (IRR)
Opportunity cost rate:     
Total elements:   

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