The Internal Rate of Return (IRR) is the discount rate at which the net present value (NPV) of an investment’s cash flows equals zero. In simpler terms, IRR represents the rate of return at which an investor can expect to break even on an investment, considering both initial outflows and future inflows. It's often used to compare and contrast different investment opportunities or projects, as it helps to identify which investments will generate the highest return over time. IRR is crucial because it provides a single, standardized metric that can be applied across different types of investments. Investors typically aim for a higher IRR, as it signifies greater profitability. For more info click here #irrcalculator
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