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INTERNAL R N. U WZ YM Form OMB No 15450052 Return of Private Foundation 9 9 0P F 12 or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation Department of the Treasury Internal
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Internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
Businesses and individuals who are evaluating investment opportunities or projects are required to calculate and consider the internal rate of return.
To calculate internal rate of return, you need to input the initial investment amount, cash flows generated by the investment, and the discount rate.
The purpose of internal rate of return is to help decision-makers determine the potential profitability of an investment and compare it to other investment opportunities.
The internal rate of return calculation should include the initial investment amount, cash flows over the life of the investment, and the discount rate used to calculate the present value of future cash flows.
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