Practice Internal Rate of Return (IRR) - 24.8 | 24. Time Value of Money | Management 1 (Organizational Behaviour/Finance & Accounting)
K12 Students

Academics

AI-Powered learning for Grades 8–12, aligned with major Indian and international curricula.

Professionals

Professional Courses

Industry-relevant training in Business, Technology, and Design to help professionals and graduates upskill for real-world careers.

Games

Interactive Games

Fun, engaging games to boost memory, math fluency, typing speed, and English skills—perfect for learners of all ages.

Typing
Memory
Math
English Adventures
Knowledge

24.8 - Internal Rate of Return (IRR)

Enroll to start learning

You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.

Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What does IRR stand for?

💡 Hint: Think about what rate it refers to in financial terms.

Question 2

Easy

What is the main purpose of calculating IRR?

💡 Hint: How does it help in decision-making?

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is the IRR?

  • The maximum loss from a project
  • The rate at which NPV is zero
  • The total cash flow over the project's life

💡 Hint: Think about what IRR signifies in the evaluation of a project.

Question 2

True or False: A project with IRR below the required return should be accepted.

  • True
  • False

💡 Hint: Consider the acceptance criteria related to IRR.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

You’re analyzing two projects: Project A has cash flows of ₹4000, ₹5000, and ₹6000 for three years with an initial investment of ₹10000; Project B has cash flows of ₹7000, ₹8000 for the first two years and ₹10000 in the third year with an investment of ₹15000. Find the IRR for both projects and determine which project to pursue based on IRR.

💡 Hint: Focus on determining NPV first, then find the discount rate.

Question 2

Explain why IRR can sometimes lead to misleading results for projects with non-conventional cash flows.

💡 Hint: Think about what non-conventional cash flows imply for re-investment rates.

Challenge and get performance evaluation