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. IRR does not solve one problem and that is when the payments are at Irregular interval. In that case we use XIRR. So in a Spreadsheet we put the date and the value both signifies how much an investment usually offer and XIRR is a more powerful function in Excel to calculate annualized yield for a schedule of cash flows occurring at irregular periods.
