Calculate the Internal Rate of Return (IRR) for a series of cash flows.
Internal Rate of Return is the discount rate that makes the net present value (NPV) of all cash flows equal to zero. If IRR exceeds your cost of capital (or required return), the investment is profitable.
Q: What is a good IRR?
A: IRR should exceed your cost of capital or hurdle rate. For real estate in India, 15-20% IRR is considered good. For equity investments, 12-15% CAGR is the benchmark (Nifty 50 historical average).
Q: Difference between IRR and CAGR?
A: CAGR works for single investments. IRR handles multiple cash flows at different times, making it more versatile for project evaluation.
Calculatr