Answer to Question #206330 in Management for Prince

Question

SUBJECT : PROJECT PLANNING AND CONTROL

1. Discuss the usage and application of Internal Rate of Return method of capital Budgeting ? (please give at least 2 points for each usage and application )

Answer 1

Internal Rate of Return is a technique that gives the earned rate of return by a given project. It is the most ideal to use in analyzing the capital budgeting projects. Secondly, it could be utilized if the cash flows have a similar sign. For instance, when the project does not turn a profit.