A Refresher on Internal Rate of Return
Harvard Business Review
MARCH 17, 2016
Any time you propose a capital expenditure, you can be sure senior leaders will want to know what the return on investment (ROI) is. 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. Know what your project is worth in today’s dollars.