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.
The internal rate of return (IRR) is a tool that's useful in corporate and personal finance for comparing investment opportunities. The goal of IRR finance is to optimize your investment funds within a defined time period to obtain the best return among competing investment opportunities. Formally an analytic tool for banking and corporate finance, IRR is gaining popularity among young couples for family investment decisions.