INTERNAL RATE OF RETURN (IRR) --The internal rate of return (IRR) is another tool that

managers can
use to decide whether to commit to a particular investment opportunity,
or to rank the desirability of various opportunities. IRR i s
defined as the discount rate at which the NPV of an investment
equals zero.

Its CALCULATION: All we need to do is enter the values

for each of the cash flows and solve for the discount rate (i). The
IRR calculation is based on the same algebraic formula as the
NPV calculation. With the NPV calculation, you know the
discount rate, or the desired rate or return, and are solving the
equation for the NPV of the future cash flows. In contrast, with
IRR, the NPV is set at zero and the discount rate is unknown. The
equation solves for the discount rate.

HURDLE RATE: You can use your company’s hurdle rate as the IRR target. The CFO
usually prescribes the hurdle rate. The hurdle rate is a minimal rate
of return t h a t all investments for a particular enterprise must
achieve. The IRR of the investment under consideration
must exceed the hurdle rate in order for the company to go
forward with it.

Typically, the hurdle rate is set well above

what could be obtained from a risk-free investment, such as a U.S.
Treasury bond. You can, in fact, think of the hurdle rate as this:

Hurdle Rate = Risk-Free Rate + Premium That Reflects the Enterprise’s

Risk

COST OF CAPITAL: It is the weighted average

cost of the organization’s different sources of capital: both debt
and equity.

Return On Equity - ROE Mean?

The amount of net income returned as a percentage of shareholders equity. Return on equity measures a

corporation's profitability by revealing how much profit a company generates with the money shareholders have
invested.  

ROE is expressed as a percentage and calculated as:

Return on Equity = Net Income/Shareholder's Equity

Net income is for the full fiscal year (before dividends paid to common stock holders but after dividends to
preferred stock.) Shareholder's equity does not include preferred shares.

Also known as "return on net worth" (RONW).

Weighted Average Cost Of Capital - WACC Mean?

A calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All capital
sources - common stock, preferred stock, bonds and any other long-term debt - are included in a WACC
calculation. All else equal, the WACC of a firm increases as the beta and rate of return on equity increases, as an
increase in WACC notes a decrease in valuation and a higher risk.
The WACC equation is the cost of each capital component multiplied by its proportional weight and then
summing:

Where:
Re = cost of equity
Rd = cost of debt
E = market value of the firm's equity
D = market value of the firm's debt
V=E+D
E/V = percentage of financing that is equity
D/V = percentage of financing that is debt
Tc = corporate tax rate

Businesses often discount cash flows at WACC to determine the Net Present Value (NPV) of a project, using the
formula:

NPV = Present Value (PV) of the Cash Flows discounted at WACC.

Investopedia explains Weighted Average Cost Of Capital - WACC

Broadly speaking, a company’s assets are financed by either debt or equity. WACC is the average of the costs of
these sources of financing, each of which is weighted by its respective use in the given situation. By taking a
weighted average, we can see how much interest the company has to pay for every dollar it finances.

A firm's WACC is the overall required return on the firm as a whole and, as such, it is often used internally by
company directors to determine the economic feasibility of expansionary opportunities and mergers. It is the
appropriate discount rate to use for cash flows with risk that is similar to that of the overall firm

PAID-UP CAPITAL -The total amount of shareholder capital that has been paid in full by shareholders.

Paid-up capital is essentially the portion of authorized stock that the company has issued and received payment
for. The amount of money that has been received by shareholders who have completely paid
for their purchased shares. This would not include any shares that have been bid on, but not
yet purchased.

Read more: http://www.investorwords.com/6872/paid_up_capital.html#ixzz15kgTL0gK