What is IRR?
by Srinivas P
I have a practical question to ask.We are preparing a project wherein the investment is INR 150,000,000/- The cashflows are for a period of 25 years and the IRR is 15%(approx). (This has been worked out using Excel spreadsheet) My question is how exactly do we tell the client in terms of real money, he will make if he invests the above referred amount on the project. To be more clear suppose it is assumed he invests the above amount at 15% IRR does the client get 22,500,000 per year(less taxes) for 25 years of the project life. So how do I explain to the client. Please let me know.
Thanks a lot
Internal Rate of Return Question
Why do we prefer to choose the project with the highest internal rate of return above the opportunity cost?
I have tried hard to find a formula which can help me to solve a question. If one of my client is interested in investing 10,000 for 10 years with semi annualy re-investment option @ 10% what will be his IRR for the project.
by Abdulmutalib Ismail
(Jubail Industrial City , Saudi Arabia)
I have calculated the IRR for a project with an initial cost of 25000USD and early profit of 3 Million USD.
The IRR calculation result is 1689 %.
This is considered to be high and illogical to report.
Is there any limit to IRR %?