Internal Rate of Return (IRR) Calculator
Parameter | Description | Example Value |
---|---|---|
Initial Investment | The initial amount of money invested. | $10,000 |
Net Cash Flows | The net cash flows received over each period (year 1: $2,000, year 2: $3,000, year 3: $4,000). | $2,000, $3,000, $4,000 |
Number of Periods | The number of periods over which the investment is held. | 3 years |
IRR | The internal rate of return that makes the net present value (NPV) of all cash flows equal to zero. | 12.82% |