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 (IRR) Internal rate of return (IRR) is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero. Internal rate of return is used to evaluate the attractiveness of a project or investment. If the IRR of a new project exceeds a companyâs required rate of return, that project is desirable. If IRR falls below the required rate of return, the project should be rejected.