Suppose there is a fund that aims for a target return with an 11% IRR and runs for 12years.
IRR is Internal Rate of Investment.
First, is this aim the IRR averaged over 12 years? Since at first the IRR will be negative I assume?
Second, what does this mean in practical terms and how does it differ from ROI? Can you illustrate through an example investment of 100K? How much will that be worth after 12 years with an IRR of 11%?
Submitted July 05, 2021 at 04:29AM by Kalenden https://ift.tt/2V7RXHM
