What is IRR in project?

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Accepted Answer

IRR stands for Internal Rate of Return in project management, which is a metric used to evaluate the profitability of a project.

IRR is a financial metric used to calculate the profitability of an investment or project.
It represents the discount rate that makes the net present value (NPV) of all cash flows from a project equal to zero.
A higher IRR indicates a more profitable project, while a lower IRR may signal potential issues.
IRR is used to compare different projects or investments to determine which one offers the best return.
For example, if a project has an IRR of 10%, it means that the project is expected to generate a return of 10% on the invested capital.

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