Making good investments in projects and long-term assets is an important part of growing a small business. You can use internal rate of return, or IRR, to help you make such investment decisions. IRR ...

Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. David Kindness is a Certified Public Accountant ...

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.

Companies may lease assets to optimize financial terms and manage balance sheets. Capital lease interest can be computed using the IRR function in a spreadsheet. Adjust IRR formula for payment ...