The IRR displays the cumulative annual investment return which is achieved based on the annual cash flows and with the specified business value as an initial capital outlay for acquiring the business. The NPV calculations display whether the cash flows are in excess of what is required at a discount rate equal to the WACC. A positive value basically means that the return on investment is in excess of the WACC while a negative value indicates that the investment return is lower than the WACC.

CopyFinancial > The IRR displays the cumulative annual investment return which is achieved based on the annual cash flows and with the specified business value as an initial capital outlay for acquiring the business. The NPV calculations display whether the cash flows are in excess of what is required at a discount rate equal to the WACC. A positive value basically means that the return on investment is in excess of the WACC while a negative value indicates that the investment return is lower than the WACC.