What is the IRR of an investment project?
Answers:
IRR shows how much return you can expect from that project. It can also indicate how robust is your project. Higher IRR system you project can withstand tougher situation with indistinguishable amount of current efficacy. For example, your project will be smaller number susceptible to escalated factor (e.g. elevated grease price, work cost, manpower salary) which are customarily results from inflation rate. In reality, i use this method to figure intrinsic good point of my stock.
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The IRR is the discount rate such that when you discount adjectives the dosh flows put money on at that rate it give you the price.