The primary purpose of informative/explanatory writing is to increase the understanding of the reader. Unlike argument writing, informative/explanatory writing starts with the assumption of truthfulness, focusing on telling how or why. Informative/explanatory writing might include any or all of the following:
What is 'Internal Rate Of Return - IRR'. Internal rate of return (IRR) is a metric used in capital budgeting measuring the profitability of potential investments. Internal rate of return is a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero. IRR calculations rely on the same formula as NPV does.
Internal Rate of Return. So the Internal Rate of Return is the interest rate that makes the Net Present Value zero. And that guess and check method is the common way to find it (though in that simple case it could have been worked out directly). Let's try a bigger example: