IRR measures the rate needed to break even on an investment. Calculate IRR by setting NPV to zero and solving for the discount rate. Use Excel's IRR function by inputting initial cost and cash inflow.
Making good investments in projects and long-term assets is an important part of growing a small business. You can use internal rate of return, or IRR, to help you make such investment decisions. IRR ...
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Discounting a future cash flow expresses future returns in today's dollars. This allows a fair comparison between initial business expenses and your expected or realized returns. As an example, you ...