Learn about how the internal rate of return is used in the creation of a capital budget along with net present value and the weighted average cost of capital.
Video created by university of illinois at urbana-champaign for the course corporate finance i: measuring and promoting value creation in module 3, we will. The internal rate of return (irr) is frequently used by corporations to compare and decide between capital projects the irr is the interest rate (also known as.
D) the chance that the internal rate of return will exceed the cost of capital 21) tangshan mining company, with a cost of capital of 10 percent, is considering. There are a variety of methods you can use to calculate roi — net present value, payback, breakeven — and internal rate of return, or irr.