Effective Interest Rate - What is it, Formula, Calculate, Examples
Effective Interest Rate - What is it, Formula, Calculate, Examples
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The Wall Street Skinny on Instagram: "Technically, the IRR ("internal rate of return") by definition is the discount rate that will make some initial cash outflow and the total future cash inflow equal one another. For our math people out there, we are solving for IRR in the equation: $0 = Cash out flow today + all future cash inflows and outflows in the future discounted at some IRR If we ignore financing, interest, and assume it was an all cash deal: $0 = -100,000 + 1,000,000 / (1+IRR)^40 or 1
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Instagramthewallstreetskinny
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