IRR measures the rate needed to break even on an investment. Calculate IRR by setting NPV to zero and solving for the discount rate. Use Excel's IRR function by inputting initial cost and cash inflow.

ROI is an important measure of an investment's performance but it has some drawbacks. Andrew Beattie was part of the original editorial team at Investopedia and has spent twenty years writing on a ...

Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess whether an ...