Calculating the internal rate of return, or IRR, of an investment is a powerful tool for businesses. When a manager is faced with a capital intensive decision, IRR can quickly compare the financial ...

Capital budgeting encompasses the methods and techniques used by firms to evaluate long‐term investment projects and allocate resources effectively. Traditionally, discounted cash flow (DCF) ...

Planning is one of the pillars that anchor the successful implementation the future business strategies. Some planning activities are achieved through capital budgeting -- that is, appraisal of viable ...

Internal rate of return (IRR) is a capital budgeting measurement used by companies to determine the profitability of a potential investment or project based on predicted cashflows. The IRR formula is ...

IRR calculates a project's average expected return by setting NPV to zero. Excel's XIRR function can compute project IRRs to help select profitable options. IRR overlooks cash flow accuracy and other ...

Forbes contributors publish independent expert analyses and insights. Bernie Kent, J.D., CPA, PFS covers taxes and investments. This article is more than 3 years old. Time weighted rate of return and ...

Capital expense (CapEx) budgeting is frequently misunderstood and disregarded by many organizations. A capital expense, at its core, refers to a significant, long-term investment undertaken by a ...

IRR is not equal to annual rate of return. Assumptions of IRR are not always reasonable and rational. IRR itself may produce misleading results. What should investors use instead of IRR? Internal Rate ...

The day-to-day decisions a small business owner makes are typically operational -- how much to charge, for example, or how to arrange a store or how many employees to schedule. But businesses also ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...