Internal Rate of Return (IRR) Based KPIs

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Internal Rate of Return (IRR) Based KPIs
Alpin McGregor, freeelance, United Kingdom

Given that IRR and NPV methods are about making decisions about the future based on expected cash flows I'm not sure that a KPI based on these will give any useful information. Surely the sensible KPI is a measure of the deviation of actual result from forecast result. Ultimately all this is going to tell you is how accurate the forecast was.



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