What Is Internal Rate of Return (IRR)?

The internal rate of return (IRR) is a measure of investment performance that estimates the annual rate of return for a project or investment, taking into account its costs and income. The internal rate of return is a discount rate that makes the present value of the cash flows from a project or investment equal … Read more

What Is Truncation?

Truncation is the process of shortening a number by cutting off some of its digits. For example, if the number 1234 is truncated to two decimal places, it becomes 12.34. Truncation is often used in financial fraud, as it can make a number seem smaller than it actually is. For example, if someone wants to … Read more