basic IRR rule


A rule of thumb that states that an individual or a company should conduct a project or make an investment if the internal rate of return exceeds the discount rate. Therefore, an individual should only participate in the activity if the discount value of the cash inflows will exceed cash outflows. Thus, accept the project if the IRR is higher than the discount rate and reject the project if it is lower than the discount rate.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
basic industry multiplier basic limit