On this page, We are going to learn about the full form of XIRR and the meaning of XIRR, As well as the meaning, definition, and acronym for XIRR in different categories. So you should read this post till the end.
The Full Form of XIRR: Extended Internal Rate of Return
XIRR Stands for Extended Internal Rate of Return. An Extended Internal Rate of Return is a modification of the internal rate of return that takes into account the time value of money. It is used to evaluate capital investment projects that have uneven cash flows.
The extended internal rate of return is the discount rate that equals the present value of the cash inflows of a project to the present value of its outflows.
The time value of money is considered in this calculation, making it different from the regular internal rate of return.
The extended internal rate of return is used to account for the time value of money when evaluating these types of projects.
It is a valuable tool for project evaluation because it takes into account the time value of money. This makes it a more accurate reflection of the true profitability of a project.