Internal Rate of Return (IRR) - Calculator & Formula
Calculate the Internal Rate of Return (IRR) using our free calculator. Understand IRR with our definition and formula to assess investment profitability.| Corporate Finance Institute
Calculate the Internal Rate of Return (IRR) using our free calculator. Understand IRR with our definition and formula to assess investment profitability.| Corporate Finance Institute
Return on Invested Capital (ROIC) is a profitability or performance measure of the return earned by those who provide capital, i.e., bondholders and stockholders.| Corporate Finance Institute
The risk-free rate of return is the interest rate an investor can expect to earn on an investment that carries zero risk.| Corporate Finance Institute
The cost of debt is the return that a company provides to its debtholders and creditors. Cost of debt is used in WACC calculations for valuation analysis.| Corporate Finance Institute
The 10-year US Treasury Note is a debt obligation that is issued by the US Treasury Department and comes with a maturity of 10 years.| Corporate Finance Institute
Unlevered Beta (Asset Beta) is the volatility of returns for a business, without considering its financial leverage. It only takes into account its assets.| Corporate Finance Institute
The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between expected return and risk of a security.| Corporate Finance Institute
Net Present Value (NPV) is the value of all future cash flows (positive and negative) over the entire life of an investment discounted to the present.| Corporate Finance Institute
A hurdle rate, or minimum acceptable rate of return (MARR), is the minimum required rate of return or target rate that investors expect to receive on an investment.| Corporate Finance Institute
The XNPV function in Excel should be used over the regular NPV function in financial modeling and valuation analysis to ensure precision and accuracy.| Corporate Finance Institute
