An example of the potential gap between nominal ... The problem with real rate of return is that you don’t know what it is until it has already happened. That is, inflation for any given period ...

as their base hurdle rate. For example, if a company's WACC is 5% and an investment has an IRR of 10%, then it could be worth raising capital to get that higher return. "Once the IRR is obtained ...

The rule of 72 is a shortcut investors can use to determine how long it will take their investment to double based on a fixed annual rate of return. To use the rule of 72, divide 72 by the fixed ...

For example, for a stock that pays quarterly ... Annual Percentage Yield (APY) is the real rate of return earned on an investment, including the effect of compounding interest.

How quickly an investment doubles depends on the rate of return. To illustrate the point ... Take a relatively recent example from Damodaran’s data: Remember that $100 invested in 1928?