Internal Rate of Return

Question

27 Apr 2023

Answer :

Word Count : 422

The Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability and attractiveness of an investment or project. It represents the discount rate at which the net present value (NPV) of the project's cash flows becomes zero. In other words, it is the rate of return that makes the present value of cash inflows equal to the present value of cash outflows.

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