Golgappa.net | Golgappa.org | BagIndia.net | BodyIndia.Com | CabIndia.net | CarsBikes.net | CarsBikes.org | CashIndia.net | ConsumerIndia.net | CookingIndia.net | DataIndia.net | DealIndia.net | EmailIndia.net | FirstTablet.com | FirstTourist.com | ForsaleIndia.net | IndiaBody.Com | IndiaCab.net | IndiaCash.net | IndiaModel.net | KidForum.net | OfficeIndia.net | PaysIndia.com | RestaurantIndia.net | RestaurantsIndia.net | SaleForum.net | SellForum.net | SoldIndia.com | StarIndia.net | TomatoCab.com | TomatoCabs.com | TownIndia.com
Interested to Buy Any Domain ? << Click Here >> for more details...

what is the difference between IRR and interst rate

Answer Posted / goldie sahni

Internal rate of return(IRR) is the discounted rate at which the present(future values discounted at certain rate r) value of all cash outflows(over life of a project)becomes equal to the present value of all cash inflows.
Present value of a cash flow=Amount projected/(1+ r)^t
where r=IRR,t=number of years from project start.
Interest rate is cost of capital i.e.rate at which capital(debt)becomes available from market like 10% or 15%.
For a project worth starting,IRR should be greater than the interest rate at which capital investment into the project is done.

Is This Answer Correct ?    8 Yes 7 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

this is my bsc final year with mathematics.i want to do an MBA in interview panel asked if you are doing bsc in mathematics then why you want to do an mba as people of your field goes in engineering lines.please help how to deal with that type of question

1988


what are two questions that an owner might be able to answer by looking at accounting information.

2018


WHY DO YOU WANT TO WORK FOR US???

2690


1. Tell us about a specific time when you became frustrated in an administrative role and how you resolved your frustration. 2.How do you envision your role in relation to the role of your principal? Describe your vision of a functional administrative team.

1959


responsibilities of HR

2135


Required to undertake a critical evaluation of the recruitment and selection for organisation

2043


why you want do business administration and management in Us?

1133


I am from Australia and I would to buy some clothes on Amazon.com and other American websites, but they do not ship to Australia, what can I do?

2073


A. What is the system approach to management? Explain the salient features of this approach. B. Describe various managerial skills briefly. Discuss the roles these skills could play in building an institution.

2142


What is the accurate answer for this question " a contract is an agreement but agreement cannot be an contract?'

1883


HelloIT Business Transformation Scenario Overview HelloIT is an eCommerce provider operating out of t he southwest corridor that needs to develop a strategic plan for acquiring large, successful competitors in the high-growth, high-population density metropolitan areas of Nigeria. The competitors that are identified for acquisition must have a unique, creative business model that c an be integrated into a synergistically superior overall HelloIT model in phases. HelloIT also plans to open some new stores during t his business transformation. It is the development and rollout of this business model that is the focus of this assignment . The plan is backed by Venture Capital Funds and as such has some very high expectations in hig hly specified timeframes. A special emphasis on processes will emerge from th e operational model to assess the benefits of processes within each acquisition. Upon completion of the project, a continuous improvement of these processes will be ongoing. Major Strategic Activities: 1. Develop the business model, identify the short-list ed competitors (that fit the needs of the business model) amenable to acquisition, and establish the s trategic timeframe. 2. Develop a Project Statement of Work( using the atta ched template

1736


Give us an example of a situation where you didn't meet your goals or objectives.

2348


caurren capacity calculator of Copper and aluminium wire

2149


if you are manager of tisco jamshedpur, how will you motivate the employees to achieve more production

2259


Tell me about a time when you failed to meet a deadline. What were the repercussions?

1022