The IRR on a project is its expected rate of return.
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Subject 3. Investment Decision Criteria 3;
This is the discount rate that forces a project's NPV to equal zero.
Note that this formula is simply the NPV formula solved for the particular discount rate that forces the NPV to equal zero. <span>The IRR on a project is its expected rate of return. The NPV and IRR methods will usually lead to the same accept or reject decisions.
Decision rules:
The higher the IRR, the better. Define the hurdle rate, which
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