It is basically a ‘trial and error’ method, because trials have to be made in an attempt to determine the discount rate. The acceptance criterion generally employed with this method is to compare the computer IRR with the required rate of return, also referred to as the ‘cut-off’ rate.
Kimsingi ni â € ~trial na errorâ € ™ mbinu, kwa sababu ya majaribu na kufanywa katika jaribio la kuamua kiwango cha punguzo. kigezo kukubalika kwa ujumla walioajiriwa kwa njia hii ni kulinganisha kompyuta IRR na kiwango required ya kurudi, pia inajulikana kama â € ~cut-Offa € ™ kiwango.