Discuss the concept of the internal rate of return (IRR) in capital budgeting and its use in evaluating investment projects. Provide an example of how IRR is calculated and interpreted in the decision-making process.

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Explore the internal rate of return in capital budgeting and its role in assessing investment projects. Illustrate with a practical example of how IRR is calculated and interpreted.

CIE 9–1 IGCSE Accounting (0985)

Discuss the concept of the internal rate of return (IRR) in capital budgeting and its use in evaluating investment projects. Provide an example of how IRR is calculated and interpreted in the decision-making process.

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