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) ...

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 ...

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 ...

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 ...

Determine the net present value (NPV), internal rate of return (IRR), and payback periods (PBP) of a series of cash flows using spreadsheet analysis Apply NPV, IRR, and PBP criteria to evaluate an ...

Capital budgeting is the evaluation and selection of long-term investments on the basis of their costs and potential returns. The process provides a framework for formulating and implementing the ...

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 ...