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 ...

Learn how MARR and IRR differ in evaluating capital budgeting projects and their impact on investment decisions.

Investors are often faced with decisions – especially when comparing two prospective investments. Knowing where to put your money comes down to understanding the opportunity of investments in ...

Q. I have prepared projections for a proposed project, and I want to calculate the internal rate of return. Instead of using Excel’s IRR function, should I use simple math formulas so others can ...

Explore capital budgeting. Learn methods like discounted cash flow, payback analysis, and throughput analysis to assess ...

Companies use a variety of financial information and analysis tools to make operating and investment decisions. One of those tools is internal rate of return, or IRR. The IRR measures how well a ...

Frey, Sherwood C. "Methods of Calculating Net Present Value and Internal Rate of Return." Harvard Business School Background Note 172-060, August 1971. (Revised June 1975.) ...

Do you feel lost trying to decide what to invest in? What if you had a tool to help you identify the best potential path forward? That’s how you can look at the internal rate of return (IRR): as a ...