What is the meaning of IRR?

IRR stands for Internal Rate of Return. It is a financial metric used to evaluate the profitability of an investment or project. The IRR is the discount rate that makes the net present value of all cash flows from the investment equal to zero. In other words, it is the rate of return at which the present value of the cash inflows equals the present value of the cash outflows. A higher IRR indicates a more profitable investment.

Internal rate of return (IRR)