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.

If you are evaluating different investment projects, you may have heard of the internal rate of return (IRR) as a way to compare their profitability. The IRR is the interest rate that makes the ...

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 ...

To understand the issue, it is important to define IRR and how it differs from return on investment (ROI). IRR is the discount rate that makes the net present value (NPV) of all cash flows from an ...