What is irr ?

Internal Rate of Return or IRR is a measure in capital budgeting parlance which is used for estimating the profit that can be obtained from the investments.

Internal rate of return is a type of discount rate that is instrumental in making the net present value of all the cash flows from any project equal to zero.

In simple words, it can be referred to as the compounded annual rate of return that can be earned on an investment or a project.

Simple meaning:

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

Internal Rate of Return or IRR is a measure in capital budgeting parlance which is used for estimating the profit that can be obtained from the investments.

Internal rate of return is a type of discount rate that is instrumental in making the net present value of all the cash flows from any project equal to zero.

In simple words, it can be referred to as the compounded annual rate of return that can be earned on an investment or a project.

Simple meaning:

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

Internal Rate of Return or IRR is a measure in capital budgeting parlance which is used for estimating the profit that can be obtained from the investments.

Internal rate of return is a type of discount rate that is instrumental in making the net present value of all the cash flows from any project equal to zero.

In simple words, it can be referred to as the compounded annual rate of return that can be earned on an investment or a project.