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So the IRR on investment of £1000 would be 10%. The above example is based on a 1 year investment; the principle is the same if the project runs over a longer period of time. Here you have to find the NPV for each of the years. A rough guide to do this, profit/ cost of the project.Thus, a 10% IRR would have to invest £ 1000. The example above is based on the one-year investment principle is the same, if the project is for long periods of time. Here you must search each year, rough guide, NPV is the gain/cost of the project.
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