Courses / Risk Reward / Internal Rate of Return (IRR)

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Internal Rate of Return (IRR) (4:09)

Internal Rate of Return (IRR) is effectively the annualized rate of return over the investment horizon. People often call it the discount rate that equates Net Present Value to zero, but that's just over complicating it.

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Julian Schulder-Elia

Isn’t the IRR on this investment actually 52%? This is assuming t0 = -$14, t1=$1, t2=$1+$29.75.

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