Step 3: Internal Rate of Return

The internal rate of return is an important indicator for measuring the relevance of a project.

 

The internal rate of return (IRR) is an important indicator for measuring the relevance of a project. Its principle is simple: it takes into account all the flows (purchases, sales, revenues, expenses, taxes…) and gives an annual return. This makes it possible to compare projects that initially have little in common. It is an indicator that is therefore above all financial, a decision aid before any investment.

 

This video will show you all the ins and outs. Listen carefully and at the end you will see a button allowing you to access the entire exercise you will have to do.

 

At the end of the exercise, you will be asked to view the video that gives you the solution of the exercise, a worksheet with the solution and additional information needed.

 

You can then proceed to the viewing of Step 3 on the internal rate of return.

 

Enjoy your viewing!