What does the IRR function calculate?
A) The present value of an investment
B) The payback period for an investment
C) The interest rate for repayment of a loan
D) The internal rate of return for an investment

Question

Quizplus · Accepted Answer

The IRR function calculates the internal rate of return for an investment, which is the rate at which the net present value of the investment equals zero. This is an important metric for evaluating the profitability or desirability of an investment.

What Does the IRR Function Calculate