IRR of annualized yield, what does irr annualized rate mean

It is calculated using the internal rate of return (IRR).

For investors, the most intuitive data comes from cash flow and point in time (or period). In addition, the average investor basically accounts for the profit and loss of the investment on a regular basis, so the method of internal rate of return (IRR) is relatively simple to apply, and it also takes into account the time value, and in addition, it is easy to calculate by borrowing the corresponding formula from Excel.

Specifically: 1. During the rule period, the initial investment of cash flow (similar to "annuity") is negative, and the later income is positive, which is calculated by the excel formula "IRR";

2. During irregular periods, cash flow can be positive or negative, calculated with excel formula "xirr";

3. Considering the cost of capital and cash reinvestment income at the same time, the period and cash flow rules are the same as "1", and the excel formula "mirr" is used to calculate.

It should be noted that the excel formula "IRR" and "MIRR" are annuities by default, and if you invest on a monthly basis, you need to multiply the calculation result by 12 to adjust the annual rate of return, and so on.

The difference between IRR and annualized rate of return.

Internal rate of return (IRR) is the discount rate at which the present value of the total amount of capital inflow is equal to the total present value of the capital flow and the net present value is equal to zero. Without the use of an electronic computer, the internal rate of return is trialled using a number of discount rates until the discount rate at which the net present value is equal to or close to zero is found. Internal rate of return is the rate of return that an investment aspires to achieve, and is the discount rate at which the net present value of an investment is equal to zero.

IRR is an abbreviation for Internal Rate of Return, which is the discount rate when the total present value of capital inflows is equal to the total present value of capital flows and the net present value is equal to zero. Without the use of a computer, the IRR is calculated using several discount rates until a discount rate with a net present value equal to or close to zero is found.

The IRR is the rate at which an investment aspires to achieve a rate of return that is a discount rate that equals the net present value of an investment. It is the rate of return that the investment aspires to achieve. The bigger the metric, the better.

In general, a project is feasible when the internal rate of return is greater than or equal to the benchmark rate of return.

The sum of the discounted cash flows for each investment year is the net present value of the project, and the discount rate at which the net present value is zero is the internal rate of return of the project. In the economic evaluation of the project, the internal rate of return can be divided into financial internal rate of return (FIRR) and economic internal rate of return (EIRR) according to the different levels of analysis.

1. Different definitions: IRR is the internal rate of return, which refers to the level of return that an investor expects to achieve, which is the rate of return when the total amount of inflow and outflow is equal, and the annualized rate of return is the theoretical rate of return obtained after calculating the current rate of return;

2. Different functions: the internal rate of return can show the project's ability to resist risks, and the annualized rate of return can only show the theoretical income of the enterprise or commodity;

3. Different calculation methods: the internal rate of return has different calculation methods in different situations, and the annualized rate of return does not need to be calculated on a case-by-case basis.

The English name of internal rate of return is internal rate of return, so it can be abbreviated as IRR. The higher the IRR indicator, the better the project's performance. Investors can use the internal rate of return indicator to calculate the return effect of investments, such as ** and **.

If the IRR is calculated as a result of 20%, it indicates that the maximum risk that the project can tolerate is 20%, and the risk in the project can manifest as the risk of inflation.

First, the concept of internal rate of return.

Internal rate of return (IRR) refers to the rate of return that can actually be achieved by the investment of a project. Essentially, it is the discount rate at which the net present value of the item is equal to zero. That is, taking into account the time value, the present value of the cash flow generated by an investment in the future is just equal to the rate of return at the cost of the investment.

The internal rate of return is a basic indicator that reflects the economic effect of the project. It refers to the discount rate when the present value of net net cash flow in each year is equal to zero during the construction and production service period of the investment project. This method of analysis takes into account the time value of money and can measure the profitability of each scheme, so it is one of the important methods of investment analysis.

2. The scope of application of the internal rate of return.

At present, investment methods such as real estate, infrastructure, and other investment methods have been familiar and used by many financial managers. However, many people's understanding of the effectiveness of investment is limited to the absolute amount of returns, and there is no scientific basis for judgment. For them, the internal rate of return (IRR) indicator is an indispensable tool.

IRR is the discount rate at which the net present value (NPV) is cleared to zero.

a.Greater than. b.Less than.

c.Greater than or equal to.

d.Amount. Correct answer: d