Investment Property Guide
The Internal Rate of Return
The Internal Rate of Return
The internal rate of return (IRR) is the total rate of return on a 100 percent equity investment over the typical holding period of 10 years. The IRR equates the present value of the net operating income, plus proceeds received upon sale of the investment at the end of the holding period. The IRR should be calculated without any financial leverage, on a free and clear basis.
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