A rule of thumb that states that an individual or a company should conduct a project or make an investment if the internal rate of return exceeds the discount rate. Therefore, an individual should only participate in the activity if the discount value of the cash inflows will exceed cash outflows. Thus, accept the project if the IRR is higher than the discount rate and reject the project if it is lower than the discount rate.
Related information about basic IRR rule:
- Basic IRR Rule - Financial Dictionary - The Free Dictionary
Accept the project if IRR is higher than the discount rate; reject the project if it is lower than the discount rate. It is wise to also consider net present value for ...
- What is basic IRR rule? definition and meaning
Definition of basic IRR rule: A rule of thumb that states that an individual or a company should conduct a project or make an investment if the internal rate of ...
- Basic IRR rule
Similar financial terms. Basic balance. In a balance of payments, the basic balance is the net balance of the combination of the current account and the capital ...
- Basic IRR rule Definition - NASDAQ.com
Basic IRR rule: read the definition of Basic IRR rule and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary.
- Basic IRR rule - Financial Definition
Financial Definition of Basic IRR rule and related terms: Accept the project if IRR is greater than the discount rate; reject the project is lower than the...
- Basic IRR rule - MBASkool
IRR refers to the internal rate of return which is the discount rate for which the NPV of a project becomes zero.
- Rules for Calculating IRR | eHow.com
Experiments in Finance: How To Calculate An Internal Rate of Return (IRR), and When Not To Use It · Financial Terms: Basic IRR Rule · Accounting Coach: How ...
- Alternative Investment Rules Data for Examples
(basic) IRR rule: for independent projects: accept if IRR ≥ OCC for mutually exclusive projects: accept project with highest. IRR ≥ OCC (if the projects are the ...