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 ...

Return on investment (ROI) and internal rate of return (IRR) are two important metrics used in evaluating investments. However, each metric is calculated differently and tells a different story.

The NPV is zero if the discount rate equals the IRR. The project will break even and have an NPV of zero if the cost of capital equals the return of capital. The Excel formula for calculating the ...