Wednesday, December 28, 2011
What Is IRR or the Internal Rate of Return?
If the IRR of your project or business venture is lower than your cost of debt or the amount of interest rate you would pay to a bank (if you borrow money from the bank to do the investment or project), then it is not a excellent investment. On the other palm, if your IRR is higher than the amount you would borrow from the bank to pay for an investment or project, then it is a excellent investment, since of the positive "spread" in between your rate of giveback and cost of debt. More information: click
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