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 Calculation question on determining CRM ROI
Call Center ROI/TCO, CRM ROI, ROI
What is the difference between risk-adjusted ROI and IRR? If I use cumulative discounted cash flow (i.e. NPV) divided by the present value of cost (i.e. cash outflows, including tax increase) to calculate ROI, why does this consistently yield a higher percentage than IRR? Please advise. Thank you.

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ASKED: July 28, 2008  3:07 PM
UPDATED: September 29, 2008  3:31 PM
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A place to start looking for an explination might be here: http://www.valuescopeinc.com/ViewDetail.aspx?PCID=48 or here: http://www.allbusiness.com/management/432981-1.html
Last Wiki Answer Submitted:  July 28, 2008  8:06 pm  by  Flame   14,895 pts.
All Answer Wiki Contributors:  Flame   14,895 pts.
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Hi there,

On SearchCRM.com, ROI expert Tom Pisello has discussed this question and similar topics at length. Browse his Ask the Expert section or jump directly to these Q/As:

Metrics: ROI, IRR, NPV, payback, discounted payback

What’s the difference between NPV and IRR?

How can I calculate internal rate of return (IRR)?

Hope this helps!
Lauren
Editor, SearchCRM.com

laurenhoyt
 115 pts.