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incremental internal rate of return


Definition
In the analysis of two investment alternatives (one more expensive than the other), the return on the additional cost. It is computed as the internal rate of return (IRR) on the additional (incremental) cash flow. In this analysis, the alternative with an incremental internal rate of return higher than the minimum acceptable rate of return is considered the better choice.


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incremental internal rate of return is ...

... part of the Accounting and Earnings subjects.
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