If a company's management has a choice to pursue one of two projects, then they can compute the IRR for each project and pursue the project that is the most profitable. Using a fictional example ...

While IRR is a more complex calculation, we can understand its usefulness with a simple example. Imagine a big business ...

IRR ≈ 7.5%), whereas between 1997 and 2001, this return approached 12%. Key factors driving the downward trend are well known. For example, our industry interviews and analysis of the ...