Economics Stock Market Questions
The internal rate of return (IRR) is a financial metric used to evaluate the profitability of an investment. It represents the discount rate at which the net present value (NPV) of the investment becomes zero. In other words, it is the rate at which the present value of cash inflows equals the present value of cash outflows. The IRR is used to determine the potential return on an investment and is often compared to the required rate of return to assess its viability.