Internal rate of return (IRR) is one of several well-known formulas used to evaluate prospective investments. It allows you to calculate an investment's potential gains over a certain period of ...

This calculation produces a single annual rate ... In this example, the IRR is 9.82 percent. IRR is useful because it can ...

Reviewed by Thomas J. Catalano Fact checked by Vikki Velasquez The discount rate refers to the interest rate used when ...