Internal Rate of Return
Internal Rate of Return is a metric used to evaluate the profitability of an investment or project. It is the discount rate that makes the net present value of all cash flows (both positive and negative) from a particular investment equal to zero. In other words, it is the rate at which the present value of cash inflows equals the present value of cash outflows. The higher the internal rate of return, the more desirable the investment is considered to be.