--%>
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 : Illustrate the complex cases when both

    Illustrate the complex cases when both supply and demand shift?

    		•
  • Q : Market Economy Define the term Market

    Define the term Market Economy and also state its advantages and disadvantages?

    		•
  • Q : Explain about Market Structures briefly

    Explain about Market Structures briefly.

    		•
  • Q : Theory of wages according to Adam Smith

    Least consistent along with Adam Smith’s theory of wages would be the suggestion that wages vary positively along with the: (w) effort required to learn skills necessary to accomplish particular types of work. (x) stability of employment and the

    		•
  • Q : Affects the location of the production

    Explain how, if at all, each of the following affects the location of the production possibilities curve?

    		•
  • Q : Self-interested motivation to underpin

    Adam Smith’s perception which self-interested motives underpin even charitable activities through apparently selfless people appeared originally into his primary major book that was entitled: (1) Theory of Moral Sentiments [1755]. (2) Leviathan

    		•
  • Q : Contrast a vertically integrated firm

    Contrast a vertically integrated firm, a horizontally integrated firm, and a conglomerate?

    		•
  • Q : Resources of private Capitalism I have

    I have a problem in economics on Resources of private Capitalism. Please help me in the following question. The Private individuals own most resources and find out how they will be employed in an economic system of: (1) Socialism. (2) Capitalism. (3)

    		•
  • Q : Ambrose’s budget constraint Question:

    Question: Ambrose consumes two goods, peanuts (x1 ) and a composite good (x2). He has a utility functionU = 4 √x1 + x2. This means his MU1 = 2/ √x1 an

    		•
  • Q : Utilitarianism of Jeremy Bentham The

    The utilitarianism of Jeremy Bentham is generally closely akin to the philosophies of: (1) Epicurianism and hedonism. (2) pragmatism and instrumentalism. (3) asceticism and stoicism. (4) dialecticism and materialism. (5) fundamentalism and predestinat

    		•