TVM versus Internal Rate of Return (IRR)




Internal Rate of Return
Knowledge Center

Translate

Forum
8
Bob, USA

TVM versus Internal Rate of Return (IRR)

I seem to get different return or interest rates when using TVM vs and IRR scenario. The scenario is putting $250 into a fund for 36 months for a total investment of $9,000. The final return is $9,423. When I use the IRR to calculate the return I get of 0.26%. When I use a TVM calculation and solve for the interest rate/year, I get a return of 3.13%. Why is this and what am I doing right or wrong?

   

More on Internal Rate of Return:
Summary
Discussion Topics
Internal Rate of Return (IRR) versus ROE versus ROA
🥇 Internal Rate of Return (IRR) Formula
🥈 Calculating Internal Rate of Return
Flat Rate versus Internal Rate of Return (IRR)
Calculating the Rate of Return
Internal Rate of Return and Real Estate
👀TVM versus Internal Rate of Return (IRR)
Internal Rate of Return (IRR) Based KPIs
Internal Rate of Return (IRR) in Real Value?
🥉 Weaknesses of Internal Rate of Return (IRR)
🔥 Advantages of Internal Rate of Return (IRR) Method
Special Interest Group

Do you know a lot about Internal Rate of Return? Become our SIG Leader

Internal Rate of Return
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2023 12manage - The Executive Fast Track. V16.1 - Last updated: 2-6-2023. All names ™ of their owners.