This is the rate of return used in capital budgeting to measure and compare the profitability of investements. It is also known as the discounted cash flow rate of return.
The term internal refers to the fact that its calculation does not incorporate environmental factors for example environement or inflation.
IRR = = I for NPV = 0
If the NPV> 0 then invest in the project
If NPV = 0 invest only if you do not have better projects
If NPV < 0 Reject the project
For extended analysis head to http://www.complexityandchaos.com
Mine planning and mine analysis tips please head to http://www.mineplanningtoday.com
For discounted gopro, tips on how to get the cheapest, product comparisons, and travel accessories head to http://www.buyacheapgopro.com
Computer repairs, computer upgrades and Web design in Perth head to http://www.personalcomputerrepairs.com