The internal rate of return, or IRR, allows investors to analyze the profitability of investments and companies to analyze the profitability of capital outlays. The easiest way to understand IRR is by ...

IRR measures the rate needed to break even on an investment. Calculate IRR by setting NPV to zero and solving for the discount rate. Use Excel's IRR function by inputting initial cost and cash inflow.

Forbes contributors publish independent expert analyses and insights. Bernie Kent, J.D., CPA, PFS covers taxes and investments. This article is more than 3 years old. Time weighted rate of return and ...

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