Explain Why the Internal Rate of Return (IRR) Is So

question 242

Essay

Explain why the internal rate of return (IRR) is so useful to decision makers when analyzing an independent project.

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Definitions:

Unilateral Contract

An agreement in which only one party makes a legally enforceable promise to pay or provide other benefits if the other party performs a specific task.

Mailbox Rule

A legal doctrine stating that an offer is considered accepted when the acceptance is dispatched, not when it is received by the offeror.

Cell Phone Number

A unique numerical identifier assigned to a mobile phone or similar wireless device.

Hula Hoop

A toy hoop that is twirled around the waist, limbs, or neck, popularized as both a children's activity and an exercise tool.