Paragraph match score 100.0%
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4. Internal Rate of Return (IRR)
IRR = Ct / (1+ r)t- Co
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Internal Rate of Return (IRR):
It is a method in which the return is calculated excluding all the external factors, such as the inflation rate, bank rate, etc. Under this, the NPV is considered to be 0. IRR = Ct / (1+ r)t- Co