Problems with IRR? I cant figure out how to figure it?
Answers:
If you have an investment that requires and produces a number of cash flows over time, the internal rate of return is defined to be the discount rate that makes the net present value of those cash flows equal to zero. This article below discusses computing the internal rate of return on periodic payments.
It helps if you draw a horizontal line with +cash flow up and (-) cash flows down when you bring the future cash flows back to the net present value.
http://invest-faq.com/articles/analy-int...
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