Assume that an investment, with an single initial cost of $1,000 and a yield of $50 monthly for 10 years, had a 7% IRR in the 60th month and a 7.2% IRR five months later. The IRR can be 6.8% in the 62nd month.

Question

Quizplus · Accepted Answer

The IRR (Internal Rate of Return) is a single rate that makes the net present value of cash flows equal to zero over the entire investment period. It cannot fluctuate monthly once calculated for a specific period.

Assume That an Investment, with an Single Initial Cost of $1,000