holdempokerdownload| What is the post-internal rate of return? What is the significance of the post-tax internal rate of return?
Calculation method of Post-Internal rate of return and after-tax Internal rate of returnHoldempokerdownloadThe significance of
In the field of investmentHoldempokerdownloadThe post-internal rate of return (IRR) is one of the important indicators to measure the investment return of the project. This paper will introduce in detail the calculation method of the post-internal rate of return, and discuss the significance of the after-tax internal rate of return.
I. calculation method of post-internal rate of return
The post-internal rate of return refers to the discount rate that makes the net present value (NPV) equal to zero during the project investment period. The specific calculation method is as follows:
Determine the cash flow of the project: first, collect cash inflow and outflow data for each year of the project. Set the discount rate: select an initial discount rate, such as 10%, and calculate the corresponding net present value. Calculate the net present value: use the formula NPV = ∑ (CF_t / (1 + r) ^ t), where CF_t represents the cash flow in the t year, r is the discount rate, t is the number of years. Adjust the discount rate: according to the calculated net present value, gradually adjust the discount rate until NPV is close to zero. The post-internal rate of return: when the NPV approaches 00:00, the corresponding discount rate is the post-internal rate of return of the project.In order to show the calculation process more intuitively, we can use a simple example to illustrate:
Year cash flow (ten thousand yuan) 0-1000 1 300 2 300 3 400Assuming that the initial discount rate is 10%, we can calculate the present value of the cash flow for each year, and then get the net present value: NPV =-1000 + 300 / (10.00)Holdempokerdownload.1) ^ 1 + 300 / (1x 0)Holdempokerdownload.1) ^ 2 + 400 / (1x 0.1) ^ 3 ≈-44.74. Since NPV is negative, we need to increase the discount rate. After many attempts, it was found that when the discount rate was 15%, NPV ≈ 0, so the post-internal rate of return in this example was 15%.
II. The significance of after-tax internal rate of return
After-tax internal rate of return refers to the post-internal rate of return after considering the impact of income tax. It is closer to the actual investment scenario and helps investors to evaluate the income level of the project more accurately. The following are several important implications of the after-tax internal rate of return:
Assessment of tax impact: after-tax internal rate of return can reflect the impact of tax on project income, which helps investors to make a reasonable trade-off between pre-tax and after-tax returns. Improve the quality of investment decisions: after-tax internal rate of return provides a more comprehensive income evaluation index, which helps investors to make more reasonable investment decisions. Promote the optimization of tax policy: after-tax internal rate of return can provide the government with the basis for evaluating the impact of tax policy on investment, which helps the government to optimize tax policy and promote economic growth.To sum up the above, it is very important for investors to master the calculation method of post-tax internal rate of return and understand the significance of after-tax internal rate of return. It is hoped that this article can help readers to better understand this concept and apply it in practical investment.
标签:
上一篇: freefiveplayvideopoker| Taiwan stocks fell 4%
下一篇: fibonaccisequenceroulette| The meaning and application of internal rate of return, why should we calculate internal rate of return?