- published: 18 Sep 2013
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The internal rate of return (IRR) or economic rate of return (ERR) is a method of calculating rate of return. The term internal refers to the fact that its calculation does not incorporate environmental factors (e.g., the interest rate or inflation).
It is also called the discounted cash flow rate of return (DCFROR).
In the context of savings and loans, the IRR is also called the effective interest rate.
The internal rate of return on an investment or project is the "annualized effective compounded return rate" or rate of return that makes the net present value of all cash flows (both positive and negative) from a particular investment equal to zero. It can also be defined as the discount rate at which the present value of all future cash flow is equal to the initial investment or, in other words, the rate at which an investment breaks even.
Equivalently, the IRR of an investment is the discount rate at which the net present value of costs (negative cash flows) of the investment equals the net present value of the benefits (positive cash flows) of the investment.
In finance, return is a profit on an investment. It comprises any change in value and interest or dividends or other such cash flows which the investor receives from the investment. It may be measured either in absolute terms (e.g., dollars) or as a percentage of the amount invested. The latter is also called the holding period return.
A loss instead of a profit is described as a negative return.
Rate of return is a profit on an investment over a period of time, expressed as a proportion of the original investment. The time period is typically a year, in which case the rate of return is referred to as annual return.
To compare returns over time periods of different lengths on an equal basis, it is useful to convert each return into an annual equivalent rate of return, or annualised return. This conversion process is called annualisation, described below.
Return on investment (ROI) is return per dollar invested. It is a measure of investment performance, as opposed to size (c.f. return on equity, return on assets, return on capital employed).
Return may refer to:
Internal may refer to:
IRR or Irr may refer to:
This video explains the concept of IRR (the internal rate of return) and illustrates how to calculate the IRR via an example. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.EducationUnlocked.org/ To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
omg WOW so easy I watched here http://MBAbullshit.com IRR Internal Rate of Return in 3 minutes If You Like My Free Videos, Support Me at https://www.patreon.com/MBAbull Imagine you found a wizard with a boat on a magic river... For every $100 you gave the wizard.. He would give you back $10/year FOREVER and ever! So how much % do you get every year? 10%. Because $10 is 10% of $100. Guess what? This 10% is called your RATE of RETURN (careful, this is not yet your INTERNAL rate of return...) So this 10% Rate of Return tells you HOW QUICKLY you get back your money in EXACTLY 1 year... compared to your original $100. So this 10% Rate of Return tells you HOW QUICKLY you get back your money in EXACTLY 1 year... compared to your original $100. Now what if... It wasn't that simple... What if t...
OMG wow! Soooo easy I subscribed here http://www.youtube.com/subscription_center?add_user=mbabullshitdotcom for Internal Rate of Return or IRR. In advance of going deeper into this approach, we need to evaluate the definition of "Rate of Return" (with no "internal" yet). Rate of Return would be the "speed" you are going to earn back profit on an annual basis, every twelve months, endlessly, in contrast to an amount you in the beginning invest. With the intention that it can be compared to the invested bigger sum, this is written just like a percent (%). By way of example, if you invest 100 dollars, and you earn back 3 dollars per annum endlessly, then the "rate of return" is 3%. Trouble-free, is it not? But let us alter the situation somewhat. Suppose, on the same $100 investment previo...
This video explains the concepts of Internal Rate of Return
Internal rate of return is defined as the rate at which cash flows are recovered so the Finance Guru is back with yet another informative video that will solve all your queries about things that should be keep in mind.Today's topic of discussion 'Internal Rate of Return' For More Updates follow me on: Facebook Link...https://www.facebook.com/tovishalthakkar Twitter Link...https://twitter.com/authorvishalt?lang=en Linked in Link. in.linkedin.com/in/vishalthakkar1405/ To know more about my channel, SUBSCRIBE now http://www.youtube.com/user/financetubebyvishalt?sub_confirmation=1
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This tutorial is a invaluable time-saver that will enable you to get good at math, business accounting. Watch our video on How To Calculate Internal Rate Of Return from one of Videojug's experts. Subscribe! http://www.youtube.com/subscription_center?add_user=videojugeducation Check Out Our Channel Page: http://www.youtube.com/user/videojugeducation Like Us On Facebook! https://www.facebook.com/videojug Follow Us On Twitter! http://www.twitter.com/videojug Watch This and Other Related films here: http://www.videojug.com/film/how-to-calculate-irr
Description: How to calculate net present value (NPV) and internal rate of return (IRR) in excel with a simple example. Download the excel file here: https://codible.myshopify.com/products/npv-and-irr-in-excel-2010-excel-files Some good books on Excel and Finance: Financial Modeling - by Benninga: http://amzn.to/2tByGQ2 Principles of Finance with Excel - by Benninga: http://amzn.to/2uaCyo6
Go Premium for only $9.99 a year and access exclusive ad-free videos from Alanis Business Academy. Click here for a 14 day free trial: http://bit.ly/1Iervwb View additional videos from Alanis Business Academy and interact with us on our social media pages: YouTube Channel: http://bit.ly/1kkvZoO Website: http://bit.ly/1ccT2QA Facebook: http://on.fb.me/1cpuBhW Twitter: http://bit.ly/1bY2WFA Google+: http://bit.ly/1kX7s6P The Internal Rate of Return, or IRR for short, is the discount rate that causes the net present value to equal zero. As a type of capital budgeting tool, the IRR allows managers and business owners the ability to weight a variety of different capital budgeting projects. The video provides a brief description and purpose of IRR in addition to showing how to calculate the...
This video explains the concept of IRR (the internal rate of return) and illustrates how to calculate the IRR via an example. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.EducationUnlocked.org/ To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
omg WOW so easy I watched here http://MBAbullshit.com IRR Internal Rate of Return in 3 minutes If You Like My Free Videos, Support Me at https://www.patreon.com/MBAbull Imagine you found a wizard with a boat on a magic river... For every $100 you gave the wizard.. He would give you back $10/year FOREVER and ever! So how much % do you get every year? 10%. Because $10 is 10% of $100. Guess what? This 10% is called your RATE of RETURN (careful, this is not yet your INTERNAL rate of return...) So this 10% Rate of Return tells you HOW QUICKLY you get back your money in EXACTLY 1 year... compared to your original $100. So this 10% Rate of Return tells you HOW QUICKLY you get back your money in EXACTLY 1 year... compared to your original $100. Now what if... It wasn't that simple... What if t...
OMG wow! Soooo easy I subscribed here http://www.youtube.com/subscription_center?add_user=mbabullshitdotcom for Internal Rate of Return or IRR. In advance of going deeper into this approach, we need to evaluate the definition of "Rate of Return" (with no "internal" yet). Rate of Return would be the "speed" you are going to earn back profit on an annual basis, every twelve months, endlessly, in contrast to an amount you in the beginning invest. With the intention that it can be compared to the invested bigger sum, this is written just like a percent (%). By way of example, if you invest 100 dollars, and you earn back 3 dollars per annum endlessly, then the "rate of return" is 3%. Trouble-free, is it not? But let us alter the situation somewhat. Suppose, on the same $100 investment previo...
This video explains the concepts of Internal Rate of Return
Internal rate of return is defined as the rate at which cash flows are recovered so the Finance Guru is back with yet another informative video that will solve all your queries about things that should be keep in mind.Today's topic of discussion 'Internal Rate of Return' For More Updates follow me on: Facebook Link...https://www.facebook.com/tovishalthakkar Twitter Link...https://twitter.com/authorvishalt?lang=en Linked in Link. in.linkedin.com/in/vishalthakkar1405/ To know more about my channel, SUBSCRIBE now http://www.youtube.com/user/financetubebyvishalt?sub_confirmation=1
The quality of the video could be improved if you change the resolution. To change this, click on the settings icon (cog wheel) and you can adjust it. Experiment to find which resolution best fits your computer. It might also depend on if you view it in full screen or not.
This tutorial is a invaluable time-saver that will enable you to get good at math, business accounting. Watch our video on How To Calculate Internal Rate Of Return from one of Videojug's experts. Subscribe! http://www.youtube.com/subscription_center?add_user=videojugeducation Check Out Our Channel Page: http://www.youtube.com/user/videojugeducation Like Us On Facebook! https://www.facebook.com/videojug Follow Us On Twitter! http://www.twitter.com/videojug Watch This and Other Related films here: http://www.videojug.com/film/how-to-calculate-irr
Description: How to calculate net present value (NPV) and internal rate of return (IRR) in excel with a simple example. Download the excel file here: https://codible.myshopify.com/products/npv-and-irr-in-excel-2010-excel-files Some good books on Excel and Finance: Financial Modeling - by Benninga: http://amzn.to/2tByGQ2 Principles of Finance with Excel - by Benninga: http://amzn.to/2uaCyo6
Go Premium for only $9.99 a year and access exclusive ad-free videos from Alanis Business Academy. Click here for a 14 day free trial: http://bit.ly/1Iervwb View additional videos from Alanis Business Academy and interact with us on our social media pages: YouTube Channel: http://bit.ly/1kkvZoO Website: http://bit.ly/1ccT2QA Facebook: http://on.fb.me/1cpuBhW Twitter: http://bit.ly/1bY2WFA Google+: http://bit.ly/1kX7s6P The Internal Rate of Return, or IRR for short, is the discount rate that causes the net present value to equal zero. As a type of capital budgeting tool, the IRR allows managers and business owners the ability to weight a variety of different capital budgeting projects. The video provides a brief description and purpose of IRR in addition to showing how to calculate the...
Project management topic on Capital budgeting techniques - NPV - Net Present Value, IRR - Internal Rate of Return, Payback Period, Profitability Index or Benefit Cost Ratio.
The quality of the video could be improved if you change the resolution. To change this, click on the settings icon (cog wheel) and you can adjust it. Experiment to find which resolution best fits your computer. It might also depend on if you view it in full screen or not.
INTERNAL RATE OF RETURN -IRR in Capital Budgeting by CMA Chander Dureja -9717356614 ; This is only a demo video. Classes are available for CA/CMA/CS, @ www.cdclasses.com . My all classes are available in Pen drive /Download link mode. For any query, please visit www.cdclasses.com or msg on 9717356614.
IRR (Internal rate of return) http://www.globalapc.com This videos explains the topic: internal rate of return. This is different from the return on investment which measures the return of the project per year. But IRR considers the overall return of the project. We also discuss the assumptions behind internal rate of return. One of the main criticisms of IRR is that the cash flow will be reinvested at the IRR which is too optimistic. This topic will help ACCA F9 Financial Management and ACCA P4 Advanced Financial Management students. In the exam, students are required to comment on advantages and disadvantages of IRR compared to net present value (NPV)method. Students are also required to do the simple calculation for internal rate of return as well. Students who are studying CIMA...
This "Understanding Finance Nugget" not only shows you how to calculate the Internal Rate of Return, but also provides an in-depth understanding of what it means and how apply it when a company is deciding on a major asset investment decision (e.g. Apple investing in a new iPhone.) In addition I discuss circumstances in which its application may be useful above and beyond a net present value analysis. Finally I show it is not just good enough to memorize to do the project if the internal rate of return is greater than the discount rate. Based on “understanding” I show there is more to it.
This CFA Level I video covers concepts related to: • Internal Rate of Return • Payback Period • Discounted Payback Period • Profitability Index • NPV Profiles • Ranking Conflicts between NPV and IRR • The Multiple IRR and No IRR Problem • Popularity of Capital Budgeting Process • Relationship Between NPV and Stock For more updated CFA videos, Please visit www.arifirfanullah.com.
IRR, MIRR, NPV Capital budgeting techniques, multiple IIR problems
IRR means internal rate of return and is a measure of financial attractiveness of an existing, planned business or investment option. There are two videos and this is the first. It is meant for a person without much finance or mathematics background. Please see the link of speech notes on google drive to understand the flow of the aspects covered in the video.
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