Calculating the internal rate of return, or IRR, of an investment is a powerful tool for businesses. When a manager is faced with a capital intensive decision, IRR can quickly compare the financial ...

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 ...

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 ...

Let's assume we have two projects, Project A and Project B, each involving the acquisition of different types of machinery to ...

Using a calculator, we see that the IRR of this investment would by approximately 15.1%, which is greater than the 10% required rate of return. Therefore, building the factory would be a good idea.