The internal rate of return is a time value of money technique that can determine how much a buyer is willing to pay for a business.

Question

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The internal rate of return (IRR) is a financial metric that measures the profitability of an investment. It is the discount rate that makes the net present value of all cash flows from the investment equal to zero. The IRR can be used to compare different investments and to determine how much a buyer is willing to pay for a business.

The Internal Rate of Return Is a Time Value of Money