- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 27 Mar 2018
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.
 Find out more
 Related articles on Designing Buildings Wiki
Featured articles and news
Avoiding 'winner's curse' and other useful info.
Interfacing with facilities management.
Developing test methods for video flame/smoke detectors
Waiting for a new deal ...but will funding materialise?
Our servers have reached another milestone. Why not write an article and be seen by our 6.5 million users.
RSHP celebrates competition win in Paris.
All about approved inspectors.
Whilst apparently confusing, German conservation is actually not that different.
The rise and fall of council housing. Book review.
Drivers of change in global heating markets.
11 interesting facts about the use and nature of the material.