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.
Not to be confused with Implied repo rate. The internal rate of return (IRR) or economic rate of return (ERR) is a method of calculating rate of return. The term internal refers to the fact that its calculation does not incorporate environmental factors (e.g., the interest rate or inflation). It is also called the discounted cash flow rate of return (DCFROR).