From there, you can determine a project's internal rate of return and weigh if that rate is worth pursuing. Here's an example: Say you're on the fence about purchasing a $100,000 piece of equipment.

XIRR, or extended internal rate of return, is a financial metric used to calculate the annualized rate of return for investments with irregular cash flows. Unlike simple return metrics such as ROI ...

How to Calculate RRR RRR is set by considering the risk-free rate, which is typically represented by government bond yields, and adding a risk premium that assesses the extra return expected of an ...