IRR is the Internal rate of return provided by a proposal. IF we use, IRR as discouting factor for calculation of NPV then NPV will be zero.
Hence IRR is the rate of return at which NPV is zero.
If IRR is more than required rate of return then the proposal should be accepted but if IRR is less than the required rate of return then proposal should be rejected. Let’s Find out IRR in calculator given below-
(Note :- usable for proposal period upton 30 years)
Note: Use negative figures for outflow and positive figures for inflow.