Re: IRR formula - Please help me

> I need to implemet the IRR formula (and calculation) into > a system under development. > I don't have a clue on what is (or looks like) the IRR. IRR means Internal Rate of Return. It's the discount rate that makes the net present value of a project equal to zero. The rate below which projects are rejected is called the "hurdle rate". Firms determine their hurdle rate by the cost of financing and the riskiness of the project. Put another way, if your project is going to cost more than, (and not make back more than) the bank will pay in interest on the money, then put the money in the bank! This definition came from: Finance (second edition) Ehsan Nikbakht, A.A. Groppelli ISBN number: 0-8120-4373-1 published by Barron's, as part of their Business Review Series. Any other basic finance book will have a complete discussion. A computer- based implementation of the IRR calculation is very simple to do, it just requires the "present value interest factor" formula. This data is commonly available in table form in the back of the texts, or stored in the business calculator's memory. See, all that extra college to get my MBA is paying off! ;) Clem __________________________________________________________________ | Clem Akins Standard Disclaimers Apply | |Reynolds Metals Co, Alloys Plant "Climb High, Cave Deep!" | | Muscle Shoals, Alabama USA cwakins@leia.alloys.rmc.com | |________________________________________________________________|