Do you feel lost trying to decide what to invest in? What if you had a tool to help you identify the best potential path forward? That’s how you can look at the internal rate of return (IRR): as a ...

Investors are often faced with decisions – especially when comparing two prospective investments. Knowing where to put your money comes down to understanding the opportunity of investments in ...

Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. David Kindness is a Certified Public Accountant ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Charlene Rhinehart is a CPA , CFE, chair of ...

Frey, Sherwood C. "Methods of Calculating Net Present Value and Internal Rate of Return." Harvard Business School Background Note 172-060, August 1971. (Revised June 1975.) ...

Rate of return represents the percentage net gain or loss of an investment's initial cost over a period of time. The rate of return calculates the percentage change from the beginning to the end of a ...

Internal rate of return and return on investment are two common metrics used to show how an investment has performed over time. Although similar, these two metrics describe investment performance in ...