Chapter 1 Discounted Cash Flow Techniques
6.1 IRR is defined as the discount rate at which the . NPV equals zero. In other words, the IRR represents the . breakeven . discount. rate. for the investment. 6.2 Decision rule: IRR > cost of capital, project accepts. The higher IRR is the better. 6.3 Steps in calculating the IRR using linear interpolation: 1. Calculate two NPV at two ... ................
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