When comparing investment in a bank account versus investment in a property (for example), one would like to compare the property investment with the interest rate obtainable from a bank account. When calculating the Internal Rate of Return for a property investment, if one recalculates the same investement amount as if it were in a bank account earning an interest rate equivalent to the IRR, the results are different. Why is that?
Is there a way of generating a percentage rate from IRR which is comparable with other forms of investment?
2006-10-17
08:03:03
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9 answers
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asked by
Anonymous