IRR on a monthly basis

Hi Everyone,

Not sure if I have asked this in the right place.

If I have a capital outlay, and then contractual monthly positive cash flows, in order to calculate the annual IRR, which is the best method?

  1. IRR(cash flows)*12 2 ((1+IRR(cash flows))^12) -1

If number 2, why?

Thanks

1 Comments
 

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