What does IRR stand for? Explain what this means in practical terms and why it is useful to any firm. How might the firm use IRR to make a decision about the possible investment?

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter14: Investing In Stocks And Bonds
Section: Chapter Questions
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QUESTION 4

 

What does IRR stand for?

Explain what this means in practical terms and why it is useful to any firm.

How might the firm use IRR to make a decision about the possible investment?

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