what is irr?
Internal Rate of Return (IRR) What it is: Internal rate of return (IRR) is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero. Internal rate of return is used to evaluate the attractiveness of a project or investment. If the IRR of a new project exceeds a companyâs required rate of return, that project is desirable. If IRR falls below the required rate of return, the project should be rejected.