The internal rate of return (IRR) is a metric used in capital budgeting to estimate the return of potential investments. Here is the formula for calculating it.

The IRR is the discount rate that brings regular cash flows back to a net present value (NPV) of zero, meaning it calculates the rate of return at which an investment or project breaks even.

Quick tip: IRR is best used when comparing investments with similar durations and in tandem with other analyses, such as payback period and net present value (NPV). IRR vs. NPV ...

Reviewed by David Kindness Fact checked by Vikki Velasquez The internal rate of return (IRR) is frequently used by companies to analyze profit centers and decide between capital projects. But this ...

The net present value (NPV) method can be a very good way to analyze the profitability of an investment in a company, ... The internal rate of return (IRR) ...

IRR is a part of the net present value (NPV) equation. A project's IRR is the return rate that makes the net present value of the project equal $0. Image source: Getty Images.

The base case gives us a relatively good IRR of 28% and an impressive net present value ("NPV") of $747M, using a 5% discount rate.

However, it’s important to use the PI alongside other financial metrics, such as net present value (NPV) and internal rate of return (IRR), to gain a comprehensive understanding of a project’s ...

This module focuses on the three primary components of a project’s cash flow statement: operations, net working capital, and capital spending. The project’s financial valuation is then conducted on ...

B2Gold Announces Positive Preliminary Economic Assessment Results for the Antelope Deposit at the Otjikoto Mine in Namibia; After-Tax NPV (5%) of $131 Million with an After-Tax IRR of 35% ...

The internal rate of return tells you how much a project or investment needs to make in order to break even, accounting for the cost of capital and the net present value of future cash flows.