Money · RATIOXA GLOSSARY
Internal rate of return (IRR)
Discount rate at which a cash-flow series has zero NPV. Not every series has one unique meaningful IRR.
Simple definition
Discount rate at which a cash-flow series has zero NPV. Not every series has one unique meaningful IRR.
Why it matters
This term changes how inputs, cash flows or results should be interpreted. RATIOXA keeps it explicit so two options are compared on the same basis.
Worked example
If IRR exceeds the user’s hurdle rate, the project meets that mathematical threshold.