For example, you might use it to evaluate whether Investment A or Investment B is the better use of your capital. IRR could also help determine whether it is more profitable to establish a new ...

what’s crucial for investors to understand is how a property’s cashflow and capital growth interact, as this ­directly impacts what’s known as the investment’s internal rate of return ...

Return on investment (ROI) and internal rate of return (IRR) are two important metrics used in evaluating investments.