Apr 15, 2025 · The internal rate of return (IRR) is the discount rate that makes an investment's net present value (NPV) of cash flows equal to zero, estimating its annual growth rate.

What is the Internal Rate of Return (IRR)? The Internal Rate of Return (IRR) is the discount rate that makes the net present value (NPV) of a project zero. In other words, it is the expected compound annual rate of return that will be earned on a project or investment.

Jun 8, 2023 · Internal Rate of Return, or IRR, is the rate of return at which a project breaks even and is used by management to evaluate potential investments. IRR functions as a return on investment (ROI) calculation. To understand IRR, one must understand net present value (NPV).

Apr 27, 2025 · IRR is the discount rate that makes the net present value (NPV) of all cash flows from a project equal to zero. It's the expected annual rate of return...

Mar 8, 2021 · Internal rate of return (IRR) is the discount rate that makes the net present value of all cash flows (both positive and negative) equal to zero for a specific project or investment. IRR may also be referred to as the discounted cash flow rate of return (DCFROR).

Apr 11, 2025 · The internal rate of return (IRR) is the interest rate that will bring the net present value of a series of cash flows to zero. Corporations use IRR to estimate the present value of...

Internal rate of return (IRR) is the minimum discount rate that management uses to identify what capital investments or future projects will yield an acceptable return and be worth pursuing.

Internal rate of return (IRR) is a method of calculating an investment's rate of return. The term internal refers to the fact that the calculation excludes external factors, such as the risk-free rate, inflation, the cost of capital, or financial risk. The method may be applied either ex-post or ex-ante. Applied ex-ante, the IRR is an estimate ...

Jul 7, 2022 · The Internal Rate of Return (IRR) is used in financial analysis to determine the profitability of a potential investment. It provides a view of the attractiveness of an investment, this means the higher the IRR the more attractive it is.

The internal rate of return (IRR) is a special discount rate (a rate of return) at which an investment's net present value equals 0. IRR is used in finance, specifically in capital budgeting , as it is one of the most well-known methods of evaluating the profitability of an investment.