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Financial Internal Rate of Return (FIRE)1 Revisited 1. Introduction The FIRE is an indicator to measure the financial return on investment of an income generation project and is used to make the investment
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Internal rate of return (IRR) is a metric used to evaluate the profitability of an investment.
Investors and companies are required to file internal rate of return for their investment projects.
Internal rate of return is calculated using a formula that takes into account the initial investment, cash flows, and discount rate.
The purpose of internal rate of return is to determine the potential profitability of an investment project.
Information such as initial investment, cash flows, discount rate, and the calculated IRR must be reported on internal rate of return.
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