Harvard Business Review

MARCH 17, 2016

There are a variety of methods you can use to calculate ROI — net present value , payback, breakeven — and internal rate of return , or IRR. What is internal rate of return? The IRR is the rate at which the project breaks even. If the IRR is higher, it’s a worthwhile investment.

Rate of Return 8

Rate of Return IRR NPV Net Present Value 8

Harvard Business Review

FEBRUARY 7, 2012

It also recognizes that, in the meantime, operational managers will gain valuable experience and knowledge about how to optimize the new power systems. We worship internal rates of return (IRR) to our detriment. Hurdle rates are important to provide some means of comparison between projects competing for capital.

ROI 13

ROI IRR Power Payback Period 13

Harvard Business Review

SEPTEMBER 24, 2014

The We Mean Business report cites an internal rate of return of 81% (that’s a ridiculous payback) on energy efficiency in the U.S., and an IRR of 27% for those companies with the most aggressive, science-based goals and actions on climate.

IRR 8

IRR Energy Tips Commitment 8