Reveal the Top Appraisal Method Maximizing Investment Returns
Internal Rate of Return (IRR): A Comparative Metric
The Internal Rate of Return (IRR) is another popular method, offering a percentage rate that represents the expected annual return on investment. IRR is particularly useful for comparing multiple investment opportunities, as it provides a clear metric to assess which project might yield the highest returns. However, it is important to note that IRR assumes reinvestment of future cash flows at the same rate, which may not always be realistic2.