Definition
Internal Rate of Return (IRR) is the discount rate at which a project’s net present value equals zero.
Human Explanation
IRR expresses expected investment profitability as a percentage.
Why it Matters
It supports comparison of alternatives and more informed long-term decisions.
Conceptual Boundary
Its result depends on scope, data and assumptions and should not be the sole decision criterion.
Practical Perspective
Use it together with risk, cash-flow and strategic assessment.