InternalRateofReturn内部报酬率.pptVIP

Scientific Computing: Compounding Internal Rate of Return內部報酬率 張智星 (Roger Jang) jang@ /jang 台大資工系 多媒體檢索實驗室 Intro to IRR Internal rate of return (IRR) Definition: The rate at which an investment plan breaks even Also known as Effective interest rate Annualized effective compounded return rate … Application: Comparison of 2 investment plans The term “internal” indicates it does not take environmental factors (e.g., inflation) into consideration. Quiz: Definition of IRR in plain texts! IRR Example Is this investment plan good? Profit=250? Bank interest rate=2% Bank interest rate=5% What i