Introduction to Internal Rate of Return (IRR)

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  • เผยแพร่เมื่อ 9 ก.ย. 2024

ความคิดเห็น • 14

  • @365FinancialAnalyst
    @365FinancialAnalyst  3 ปีที่แล้ว

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  • @CStrik3r
    @CStrik3r 4 ปีที่แล้ว +10

    This is that kind of channel that once you stumble upon you're like " how the f**k could I have missed it for so long". I hope you do videos again. It's great value !

  • @Isaac_Kimani
    @Isaac_Kimani 2 ปีที่แล้ว

    This is the only video out of all the ones I've watched that has answered my questions about IRR, thank you!

  • @graywilliams_77.
    @graywilliams_77. ปีที่แล้ว +1

    I realized that the secret to making a million is making better investment. I always tell myself you don't need that new car or that vacation just yet and that mindset helps me make more money investing.

    • @graywilliams_77.
      @graywilliams_77. ปีที่แล้ว

      What I think everyone need is a Financial Adviser, who can help you get in and out of any investment at any time and you'd sure be in Profit

    • @graywilliams_77.
      @graywilliams_77. ปีที่แล้ว

      *ROCH DUNGCA-SCHREIBER,* That's whom i work with

  • @chalmerilexus2072
    @chalmerilexus2072 4 ปีที่แล้ว +2

    I have a doubt...in theory, at IRR, NPV = 0. So, one can conclude that IRR is the break even point for NPV of project...Carrying forward the logic, we can conclude that higher IRR means higher break even for the given project and togher will be to cross the break even or cut-off. So, higher IRR should not be a good proposition. Then why it is commonly said higher IRR is preferred....Actually higher IRR means higher cut-off point and more difficult to achieve...
    Pardon my ignorance but please explain....

    • @Isaac_Kimani
      @Isaac_Kimani 2 ปีที่แล้ว +1

      The purpose of having IRR is to have a metric you can use to compare with an alternative rate of return, in this case we can call it the Required Rate of Return (RRR).
      - IRR uses NPV = 0 to help you figure out the point at which you'll break even using the projected cash flows of the project in question.
      (Remember that when solving for NPV, we begin with a negative number representing the initial investment, so if NPV = 0, there's no profit or loss)
      - The IRR will be a percentage representing your break even point.
      - If your RRR is less than your IRR, then that means your RRR would be below your break even point. Meaning that the projected cash flows for the project in question, would lead you to break even sooner than the alternative project. Which would then lead you to accept the project in question.
      I'm open to correction if I got something wrong, nevertheless I hope this helps! 😊

  • @sense-of-admiration
    @sense-of-admiration 9 หลายเดือนก่อน

    Greetings
    Please advise.
    IRR is a primary tool of.....?
    Finincial analyst?
    Adviser
    Or Actuary?
    And if so,
    How do data scientists relate to this?
    Looking forward for your reply, Thanks in advance.

  • @aakashshahu2976
    @aakashshahu2976 4 ปีที่แล้ว

    Sir ned krastev please tell me what is your qualification and which big companies did you work with them.
    I'm from India and your student from udemy

  • @paulgordonjr3047
    @paulgordonjr3047 3 ปีที่แล้ว +1

    Why cant yoh solve for the constant instead od guessing?

    • @365carears.3
      @365carears.3 3 ปีที่แล้ว

      + 𝟷𝟻𝟽𝟷𝟸𝟷𝟶𝟷𝟺𝟸𝟽

  • @daniellebahena567
    @daniellebahena567 ปีที่แล้ว

    Im still confused.