- published: 18 Sep 2013
- views: 334891
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).
IRR or Irr may refer to:
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.
Return may refer to:
Internal may refer to:
IRR (Internal Rate of Return)
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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...
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
This video compares and contrasts NPV and IRR, noting several situations in which IRR cannot be used. 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
This video explains the concepts of Internal Rate of Return
Due to differences in the scale, timing, and riskiness of projects, we cannot simply compare the IRRs (incremental rates of return) of two projects. However, we can compute the incremental cash flows of choosing one project versus the other and compute an incremental IRR for these cash flows. This incremental IRR can then be compared to the discount rate to determine which project is more profitable. That being said, the incremental IRR is problematic when some of the negative cash flows do not precede the positive cash flows. Furthermore, the incremental IRR tells us which project is more profitable but it does not tell us whether each of the projects has a positive NPV on a stand-alone basis. And, if the projects have different costs of capital, then we have the additional problem o...
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 'Difference between NPV and IRR'. 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
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 Internal Rate of Return, or IRR, is an important calculation used in real estate to compare investments to each other. When we invest in real estate, we are typically dealing with properties that provide cash flow streams. The IRR takes into account the benefit and timing of these cash flows and provides us with a great measure of our investments performance.
If you had a room, he'd paint it white,
survives the day, prefers the night,
build sight.
Got a head for figures,
no time for bickers,
(or so he says,)
prefers the company of a woman.
Finds it more physical,
(that's an important word,)
always seen first then heard,
such a rare bird.
With praise he glows,
with change he grows,
finds that important,
hates waiting, it's not stimulating,
likes celebrating,
I can't understand why that is so funny,