The conversation between human and AI assistant.
Write down the various capital budgeting models. In financial modeling with spreadsheet?
That makes sense. How is Internal Rate of Return (IRR) used in capital budgeting?
Internal Rate of Return (IRR) is a capital budgeting model that calculates the rate of return at which the present value of all cash inflows equals the present value of all cash outflows. IRR is used to determine the potential profitability of an investment project, and to compare it to other investment opportunities with different rates of return.