Internal rate of return is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time.

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is a metric used to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero, not the expected net monetary gain or loss.

Internal Rate of Return Is a Method of Calculating the Expected