The IRR is:
A capital investment analysis method that incorporates the time value of money, where the IRR is the rate of return, based on discounted cash flows, of a capital investment . It is the interest rate at which the NPV of the investment is zero
The Internal Rate of Return (IRR) is a financial metric used to assess the profitability or attractiveness of an investment project. It is the rate at which the present value of future cash flows equals the cost of the initial investment. In simpler terms, IRR is the percentage return that an investor can expect to earn on each dollar invested in a project over its life. If the IRR of a project is greater than the required rate of return, the project is considered financially viable and can be accepted. Otherwise, the project should be rejected, as it would not generate sufficient returns to cover the invested capital.
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