IRR calculates a project's average expected return by setting NPV to zero. Excel's XIRR function can compute project IRRs to help select profitable options. IRR overlooks cash flow accuracy and other ...

IRR Examples Let us use a couple of examples to show you how simple the IRR concept is. If you invested $100 and at the end of one year you recouped a total of $115 then the IRR would be 15%.