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Q » How do you calculate the internal rate of return (IRR) for a project?
17 Oct, 2025
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A » The internal rate of return (IRR) is calculated by finding the discount rate that makes the net present value (NPV) of all cash flows from a project equal to zero. This involves estimating future cash flows, then using trial-and-error or software tools to identify the rate that balances the present value of these inflows against the initial investment. IRR is a key metric for evaluating the profitability of potential investments.
17 Oct, 2025
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