[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-29972":3,"doc-seo-29972":21},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"file_id":15,"file_url":16,"file_type":17,"file_size":18,"view_count":4,"is_deleted":4,"is_public":19,"is_downloadable":19,"audit_status":19,"update_tm":20},29972,1099514067415,"Rowan","https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c",4,"Exam","Internal Rate of Return Formula and Explanation","This document explains the calculation of the Internal Rate of Return (IRR) using linear interpolation. The IRR is the rate of return at which a project’s Net Present Value (NPV) becomes zero. Projects are typically accepted if their IRR exceeds the cost of capital or target rate of return. The formula for IRR by linear interpolation is provided: IRR = a + ((NPVa / (NPVa - NPVb)) * (b - a))%. It defines 'a' as the lower of the two rates of return used, 'b' as the higher rate, 'NPVa' as the NPV obtained using rate 'a', and 'NPVb' as the NPV obtained using rate 'b'. The document also highlights a key assumption of the IRR method: that cash flows can be reinvested at the IRR itself over the project's life. This contrasts with the NPV method's assumption of reinvestment at the cost of capital. Notably, the provided formula is indicated as not being given in the exam.","cbCaik2IdzkZgnTC","https://ap.wps.com/l/cbCaik2IdzkZgnTC","pdf",698699,1,1778285128,{"code":4,"msg":22,"data":23},"ok",{"site_id":24,"language":25,"slug":26,"title":13,"keywords":27,"description":14,"schema_data":28,"social_meta":61,"head_meta":63,"extra_data":65,"updated_unix":20},105,"en","internal-rate-of-return-formula-and-explanation","",{"@graph":29,"@context":60},[30,46],{"@type":31,"itemListElement":32},"BreadcrumbList",[33,37,41,44],{"item":34,"name":35,"@type":36,"position":19},"https://docshare.wps.com","Home","ListItem",{"item":38,"name":39,"@type":36,"position":40},"https://docshare.wps.com/document/","Document",2,{"item":42,"name":12,"@type":36,"position":43},"https://docshare.wps.com/document/exam/",3,{"item":45,"name":13,"@type":36,"position":11},"https://docshare.wps.com/document/internal-rate-of-return-formula-and-explanation/29972",{"url":45,"name":13,"@type":47,"author":48,"headline":13,"publisher":50,"fileFormat":53,"description":14,"dateModified":54,"datePublished":54,"encodingFormat":53,"isAccessibleForFree":55,"interactionStatistic":56},"DigitalDocument",{"name":9,"@type":49},"Person",{"url":34,"name":51,"@type":52},"DocShare","Organization","application/pdf","2026-05-09",true,{"@type":57,"interactionType":58,"userInteractionCount":4},"InteractionCounter",{"@type":59},"ViewAction","https://schema.org",{"og:url":45,"og:type":62,"og:title":13,"og:site_name":51,"og:description":14},"article",{"robots":64,"canonical":45},"index,follow",{"doc_id":7,"site_id":24}]