The internal rate of return takes into account the purchase price, the selling price and the timing of any income received from the investment.

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is a financial metric used to evaluate the profitability of an investment, taking into account the initial purchase price, the selling price, and the timing and amount of any income (such as cash flows) received during the investment period.

The Internal Rate of Return Takes into Account the Purchase