WHAT IS IIR & ROI

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WHAT IS IIR & ROI

Accepted Answer

IIR stands for Internal Rate of Return, a metric used to evaluate the profitability of an investment. ROI stands for Return on Investment, a measure of the gain or loss generated on an investment relative to the amount of money invested.

IIR is a financial metric used to calculate the profitability of an investment by determining the discount rate that makes the net present value of all cash flows from the investment equal to zero.
ROI is a financial ratio that compares the net profit from an investment to the initial cost of the investment, expressed as a percentage.
IIR takes into account the time value of money and is often used in capital budgeting to evaluate the potential returns of different investment opportunities.
ROI is a simple and widely used metric to assess the efficiency of an investment and is commonly used by businesses to make decisions about allocating resources.
Example: If an investment has an IIR of 10%, it means the investment is expected to generate a 10% return annually. If the ROI of a project is 20%, it means the project generated a 20% return on the initial investment.

WHAT IS IIR & ROI

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WHAT IS IIR &amp; ROI

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WHAT IS IIR & ROI