--%>
Assignment Help - homework help

Define internal rate of return

What do you understand by the term internal rate of return?

E

Expert

Verified

Internal rate of return is employed to compute the even break point that is also another way to compute the cost of capital and it consists of the risk premium. It is the rate of return that is employed in capital budgeting that gives the indication of the profitability of investments. This is also named as discounted cash flow rate of return. This cannot be employed for equally exclusive projects where the selection can be done to only one project instead of both the projects.

   Related Questions in Business Economics

  • Q : Gains from Exchange- Practice and

    When a world famous concert pianist is as well the world's fastest short order cook, he would most likely gain the most financially through devoting: (i) Full time to frying burgers (ii) Full time to piano practice and concerts. (iii) Half-time cooking and half-time p

    		•
  • Q : Market system automatically adjustment

    Concept of Adam Smith that the market system automatically adjusts as when guided through an “invisible hand” most intimately resembles: (1) flows of electricity across the microcircuits within computer chips. (2) homeosta

    		•
  • Q : Nature and Scope of Economics Nature

    Nature and Scope of Economics: Introduction Economics is a social science that

    		•
  • Q : Define Operating income approach

    Describe briefly Operating income approach?

    		•
  • Q : Perfect competition leads the economic

    The perfectly competitive market structure benefits consumers since: w) firms do not generate goods at the lowest possible price within the long run. x) firms are forced through competitive pressure to be as efficient as possible. y) firms add a much

    		•
  • Q : Least probability of competitive market

    The competitive market system is least probable to be allocatively unproductive as a result of: (w) externalities and public goods. (x) cutthroat competition and the outsourcing of low-wage jobs to less grown countries. (y) the underproduction of a go

    		•
  • Q : Illustrate the Risks involved with bonds

    Illustrate the Risks involved with bonds?

    		•
  • Q : Reasons for change in expanded

    What are the reasons for change in expanded production possibilities with women?

    		•
  • Q : Who is a normal resident Normal

    Normal resident: The persons or an institution who lives in a country and whose centre of interest lies in that country is termed as a normal resident of that country.

    		•
  • Q : Introduction of the term Cost of

    Give a brief introduction of the term Cost of retained earnings?

    		•