What is Internal Rate of Return (IRR)?

In this short business training video, we look at the concept of IRR (Internal Rate of Return), how it works and it's relationship with NPV (Net Present Value).

Subscribe to AssistKD on YouTube.

AssistKD provides business training, apprenticeships and consultancy services throughout the UK and internationally. Click here to view AssistKD’s extensive choice of classroom (virtual and face-to-face) and e-learning courses.

[outdomsok]

Very easy-to-understand approach to this concept!

[Briannalangland]

good information but way too fast.... like calm down sis this is accounting

[Leandrasjones]

good concept for a video but i now have more questions, like why would an IRR less in absolute terms, some examples would be helpful.

[kamranazeem]

What is the logic behind that IRR makes the NPV zero?

[TWN]

So is a low IRR good? Meaning a lower return is required to break even on investment?

[oneday]

IRR It must be bigger then the discount rate and close to it . I mean, if it's too high for the discount rate that's not good, we have to raise costs, right ?

[satechmill]

In minute 2:56 i would love to know, Why would a company would choose a project that returns less money in absolute terms? Im trying to use my logic but i dont conclude to something realistic.

[GhanaDimples]

98 (BENEFITS) x 0.943(DISCOUNT FACTOR 6%) = 92.41(DISCOUNT CASH FLOW) NOT 94.42

[juniorjay]

discounted cash flow video unavailable

[ammu]

pls ....take ur own time to explain
..its too fast ..i can't grasping ur speed