Question

Does anyone know the formula to calculate IRR?

Answer 1

http://en.wikipedia.org/wiki/Internal_rate_of_return

Answer 2

I don't even know what IRR is.

Answer 3

thanks but it shows the formula for NPV

Answer 4

what is IRR?

Answer 5

internal rate of return

Answer 6

don't know economic/accounting sorry

Answer 7

umm its okay..

Answer 8

I just read on the internet the following: "There exists no closed form formula to calculate IRR, this is so as the variable for Irr is trapped in the underlying IRR equations in a way that one is not able to separate it or to solve for it."

Answer 9

Definition of 'Internal Rate Of Return - IRR'
The discount rate often used in capital budgeting that makes the net present value of all cash flows from a particular project equal to zero. Generally speaking, the higher a project's internal rate of return, the more desirable it is to undertake the project. As such, IRR can be used to rank several prospective projects a firm is considering. Assuming all other factors are equal among the various projects, the project with the highest IRR would probably be considered the best and undertaken first.

IRR is sometimes referred to as "economic rate of return (ERR)".

Read more: http://www.investopedia.com/terms/i/irr.asp#ixzz1pWRGmDSn

Answer 10

It has to do with discounted cash flows. That is why I presented the link I did.

Answer 11

Thanks