The internal rate of return, or IRR, allows investors to analyze the profitability of investments and companies to analyze the profitability of capital outlays. The easiest way to understand IRR is by ...

Calculating the internal rate of return, or IRR, of an investment is a powerful tool for businesses. When a manager is faced with a capital intensive decision, IRR can quickly compare the financial ...

IRR calculates a project's average expected return by setting NPV to zero. Excel's XIRR function can compute project IRRs to help select profitable options. IRR overlooks cash flow accuracy and other ...