How to Calculate Internal Rate of Return Over a 10-Year Period. Making good investments in projects and long-term assets is an important part of growing a small business. You can use internal rate ...

How to Calculate an Internal Rate of Return With a Straight Line Method of Depreciation. Every day, business managers make capital budget decisions -- choices about whether to invest in projects ...

Internal rate of return (IRR) is one of several well-known formulas used to evaluate prospective investments, especially ones that generate cash flows, like in real estate.

Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess ...

One simple but powerful method investors can use to assess the risk and reward of a stock portfolio is using the Capital Asset Pricing Model, or CAPM, model for expected returns.

Answering this involves an internal rate of return calculation, and it is the same process we will use to calculate the return on an annuity. Exhibit 4.5 shows how to set up this calculation in Excel.

Enter internal rate of return The internal rate of return solves this problem by calculating the percentage return on an annualized basis regardless of the actual investment period.

The after-tax real rate of return is the profit or loss on an investment after accounting for inflation and taxes.

Time weighted rate of return and IRR (internal rate of return) are identical where there have not been any contributions or distributions from a portfolio during the measurement period.