Incremental internal rate of return computation
If the incremental ROR is greater than or equal to the MARR, then the more costly The rate of return of the incremental NCF is easily calculated in this example irr uses the following conventions: If one or more internal rates of returns ( warning if multiple) are strictly positive rates, Return sets to the minimum. When comparing 2 options using ROR, use the IRR of the difference between cash flows. Do not rank option by Another extreme incremental Rate of return example: MARR=5%. Option 0 1 2 3 IRR Compute i* for Challenger If i* > MARR