PMP Lecture No. 83: Project Selection Method - IRR
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- Опубликовано: 24 сен 2024
- The Internal Rate of Return (IRR) is a project selection method used to evaluate and compare the profitability of potential projects. IRR is the discount rate that makes the net present value (NPV) of all cash flows from a project equal to zero. It represents the expected annual rate of return on the investment. Projects with a higher IRR are generally preferred, as they indicate greater potential for profitability. IRR helps decision-makers assess the financial viability of projects, ensuring that the chosen project aligns with the organization's financial goals and maximizes value.
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