0% IRR
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Total inflows
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Net (inflows − investment)
IRR is the discount rate at which the net present value of all cash flows equals zero. The first amount is the initial outflow; the rest are yearly inflows.
Frequently Asked Questions
What is IRR?
The internal rate of return is the annual return that makes an investment’s net present value zero. If the IRR exceeds your required return, the investment is generally worthwhile.
Calculate the internal rate of return (IRR) of an investment from its cash flows.