IRR

Internal Rate for Return (IRR) for Mutually Exclusive Project Mutually exclusive project is different from independent project. For mutually exclusive project, we can accept project A or B or deny both, but we cannot accept both projects. We may solve mutually exclusive projects using IRR with following way: Compute incremental IRR solved via cash flows from project A minus project

Internal Rate of Return (IRR) for Independent Project Company may have some projects to make decision invest or not.  The independent project is one whose acceptance or rejection is independent of the acceptance or rejection of the other projects. Internal rate of return (IRR) is the discount rate that makes Net Present Value (NPV) of investment zero. NPV =sum of

Multiple Internal Return of Return (IRR) for Mixture Project Internal rate of return (IRR) is the discount rate that makes Net Present Value (NPV) of investment zero. NPV = initial cash flow – sum of present value of each cash outflow + sum of present value of each cash inflow Mixture project has multiple IRRs. In theory, a cash flow

Internal Rate of Return (IRR) for Financing Project Internal rate of return (IRR) is the discount rate that makes Net Present Value (NPV) of investment zero. NPV= Cash receipt – sum of present value of each cash outflow when NPV= 0, so Cash receipt = sum of present value of each cash outflow Investing project has only one IRR. Project

Internal Rate of Return (IRR) for Investing Project Internal rate of return (IRR) is the discount rate that makes Net Present Value (NPV) of investment zero. NPV =sum of present value of each cash inflow – initial                investment when NPV=0, so sum of present value of each cash inflow =initial investment Investing project has only one IRR. To determine