The internal rate of return (IRR), also known as the discounted cash flow rate of return, is the discount rate that makes net present value equal to zero. It is used to estimate the profitability of a potential investment.
Some other related topics you might be interested to explore are Net Present Value, Time Value of Money, and Money-weighted Rate of Return.
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Internal Rate of Return is among the topics included in the Quantitative Methods module of the CFA Level 1 Curriculum.
