Thread: IRR
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joeu2004 joeu2004 is offline
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Default IRR

On Mar 22, 5:30 pm, Jay wrote:
I have a silly question. I calculated an IRR for my company. However, I have
a cashflow that is coming in at the same time as my "Cost Of Acquisition". If
I add the two together is this wrong???


No. That is absolutely the right thing to do. Let me be sure I
understand you: you have an inflow and outflow in the same time
period. If so, then you are correct to use the net cash flow; that
is, inflow minus outflow (or vice versa, depending on how you choose
to sign your cash flows).