Relationship Between IRR, NPV, and Discount Rate Explained in 1 Minute

preview_player
Показать описание
Some Great Resources:

Just a short and easy explanation of the relationship between internal rate of return (irr), net present value (npv), and the discount rate
Рекомендации по теме
Комментарии
Автор

this the most explicit video ive seen on this topic so far.

PROPERTY_EXPERTE
Автор

Great video. For simplicity sake this helps many people. However, the discount rate is not the rate at which you borrow. The discount rate is defined by the rate that investors can get in the market for projects with the same/similar risk. Thus, if the project's IRR is greater than the rate given to the market for projects with the same/similar risk, the NPV is positive(and vice versa = if the market pays higher rate for same/similar risk than your IRR then NPV would be negative)

FlipHackingRealEstate