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What is a Management Dashboard?
The term Management Dashboard defines a wide range of data reporting and visualization tools or dashboards that allow using various performance & efficiency measures to report on an enterprise’s ability to organize and coordinate its activities in accordance with certain policies and in achievement of pre-determined objectives. What is a Management Dashboard?
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In this Money Management Action Plan you can read a range of tips and suggestions that will help you manage your money in an effective manner.

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Home » Glossary » What is Project IRR
What is Project IRR  

What is Project IRR


Project IRR (internal rate of return) is a rate of return used in project budgeting to measure and compare the profitability of investments: it is the average annual return earned through the life of a project, showing a comparative appraisal of investment proposals where the flow of income varies over time, so it derives the rate of growth that a project is expected to generate (true annual rate of earnings on an investment). It is the discount rate at which the net present value of negative cash flows in the project equals the net present value of the positive cash flows in the project. It is called internal refers because its calculation doesn’t incorporate environmental factors like inflation. As far as the project IRR is a rate, it is used as an indicator of the efficiency or yield of a project. 

Other names of this method are the discounted cash flow rate of return or the rate of return (ROR). An advantage of the IRR method is that it considers the time value of money. Internal rates of return are utilized to analyze the advisability of making investments into projects. The higher IRR a project has, the more advisable it is to undertake the project (the more beneficial it is). If several projects demand the same amount of up-front investment, the project with the highest IRR will be considered as the most worthwhile and it will be launched at first place.




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