Discover how to calculate internal rate of return (IRR) to evaluate investment opportunities and understand their potential returns.

Internal rate of return (IRR) is a capital budgeting measurement used by companies to determine the profitability of a potential investment or project based on predicted cashflows. The IRR formula is ...

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Students of corporate finance are taught the dangers of judging projects by their internal rate of return. The ...

Deciding where to invest your capital is one of the most critical decisions a business owner or a financial manager can make. It’s a process of weighing potential returns against the risks of a ...

Businesses often have to make investment decisions. This might involve deciding which piece of equipment or machinery to buy, or whether to move to bigger premises. Any investment is made in the hope ...

MIRR adjusts for differences in the perceived reinvestment rates of positive cashflows (the money a company receives) and cash outflows (the money a company spends) derived from the net present value ...