A Refresher on Internal Rate of Return

A Refresher on Internal Rate of Return

By Fouad Bendris

You’ve got a great idea for a new product that will increase revenue or a new system that will cut the company’s costs. But how can you be sure that it’s a worthwhile investment? Any time you propose a capital expenditure, you can be sure senior leaders will want to know what the return on investment (ROI) is. There are a variety of methods you can use to calculate ROI — net present value, payback, breakeven — and internal rate of return, or IRR !

Fouad Bendris’s insight:
#IRR – Understand this commonly used way to calculate #ROI.

Source:: Strategy & Governance

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