All Guides
Concept9 min read
Internal Rate of Return (IRR)
The discount rate that makes a project's NPV equal to zero — effectively the project's annualized expected return. Investors compare IRR to their hurdle rate to decide whether to invest.
Unlock the full guide
Create a free account to read the full concept — The discount rate that makes a project's NPV equal to zero — effectively the project's annualized expected return. Investors compare IRR to their hurdle rate to decide whether to invest. Then practice it in a live AI case interview and get scored on 6 dimensions.
What's inside
- Definition
- Why it matters
- Formula
- Units & benchmarks
- Key levers
- Where it shows up in cases
- How it's charted
- Worked example
- Common traps
- Industry nuances
Free plan includes 1 AI interview session. No credit card required.