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Provide examples of when you would use ROI and IRR calculations.

Provide examples of when you would use ROI and IRR calculations.

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Roi is used to know the profitability % on amount invested. If the Roi is higher then it resembles high performance.In business, the purpose of the return on investment (ROI) metric is to measure, per period, rates of return on money invested in an economic entity in order to decide whether or not to undertake an investment. It is also used as an indicator to compare different investments within a portfolio.

The internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments. The internal rate of return is a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

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