Every day, business managers make capital budget decisions -- choices about whether to invest in projects such as building a factory, upgrading machinery or investing in research and development. But ...

Learn how MARR and IRR differ in evaluating capital budgeting projects and their impact on investment decisions.

Investors are often faced with decisions – especially when comparing two prospective investments. Knowing where to put your money comes down to understanding the opportunity of investments in ...

Explore capital budgeting. Learn methods like discounted cash flow, payback analysis, and throughput analysis to assess ...

Q. I have prepared projections for a proposed project, and I want to calculate the internal rate of return. Instead of using Excel’s IRR function, should I use simple math formulas so others can ...

Frey, Sherwood C. "Methods of Calculating Net Present Value and Internal Rate of Return." Harvard Business School Background Note 172-060, August 1971. (Revised June 1975.) ...

Return on investment (ROI) and internal rate of return (IRR) are two important metrics used in evaluating investments. However, each metric is calculated differently and tells a different story. ROI ...

When it comes to evaluating investment performance, investors and financial professionals rely on various metrics to gain insights into the effectiveness of their strategies. One such crucial measure ...

Rate of return represents the percentage net gain or loss of an investment's initial cost over a period of time. The rate of return calculates the percentage change from the beginning to the end of a ...

Do you feel lost trying to decide what to invest in? What if you had a tool to help you identify the best potential path forward? That’s how you can look at the internal rate of return (IRR): as a ...