IRRmenetelmillä
IRRmenetelmillä is a Finnish term that translates to "using IRR methods" or "by means of IRR methods". IRR is an acronym for Internal Rate of Return. Therefore, IRRmenetelmillä refers to the application of the Internal Rate of Return calculation in financial analysis. The Internal Rate of Return is a discount rate that makes the net present value (NPV) of all cash flows from a particular project or investment equal to zero. In essence, it represents the profitability of potential investments.
When decisions are made using IRRmenetelmillä, businesses and investors compare the IRR of a project to their
However, using IRRmenetelmillä is not without its limitations. It can sometimes produce multiple IRRs for projects