- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 24 Sep 2020
Internal rate of return for property development
It is a similar calculation to Net Present Value (NPV) and Discounted Cash Flow (DCF) in that anticipated future income and expenditure are used to assess whether or not to proceed with a project. The IRR is the percentage which, when applied to future capital costs and receipts, results in a Net Present Value of £Nil.
Usually the project IRR must exceed the cost of capital by an agreed amount so that the risk of proceeding is seen to be within acceptable commercial parameters. It can be seen, therefore that an accurate cash flow projection for a prospective project must be developed before an accurate IRR assessment can be made.
 Related articles on Designing Buildings Wiki
Featured articles and news
The hidden price of infrastructure.
BREEAM incorporates wellbeing into its Building Back Better programme.
Administration signals policy changes on some building-related issues.
From inns and coaching houses to boutiques.
Survey reveals green skills gap.
America's economic collapse produced scores of PWA Moderne projects.
The benefits of glowing aggregates and cement.
Urgent need for open communication to address mental health issues.
Guidance offered on COVID-19 green recovery, building safety and more.
Providing strength and support above the joists.
Enforcer will test and investigate product safety.