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What is the difference between internal rate of return and rate of return?

April 26, 2017Business difference Finance Internal Investing rate of return

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What is the difference between internal rate of return and rate of return?

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If the internal rate of return is greater than the investor’s required rate of return, then the investor should make the spread between the two I would assume. As for a firm, they should invest in the project only if IRR > cost of capital, or wacc.