Internal rate of return (or IRR) is defined as the discount rate that makes the present value of the future after-tax cash flows equal to investment outlay, made initially, by assuming that profit ...

Excel has a built-in IRR function that simplifies calculations significantly. To use it, type =IRR (values,guess) into an empty cell. ‘Values’ refers to your cash flow data range and ‘guess’ is an ...

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IRR measures the rate needed to break even on an investment. Calculate IRR by setting NPV to zero and solving for the discount rate. Use Excel's IRR function by inputting initial cost and cash inflow.

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