Calculating the internal rate of return, or IRR, of an investment is a powerful tool for businesses. When a manager is faced with a capital intensive decision, IRR can quickly compare the financial ...

Using a calculator, we see that the IRR of this investment would by approximately 15.1%, which is greater than the 10% required rate of return. Therefore, building the factory would be a good idea.

There is immense opacity in the venture capital industry, and that has made comparing venture funds notoriously difficult. Traditional benchmarks calculated by groups like Cambridge Associates bucket ...