The discount rate when the present value of the cash inflows equals the original investment. Projects with higher IRR values are generally considered better than projects with lower IRR values. IRR assumes that cash inflows are reinvested at the IRR value.

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1. The discount rate when the present value of the cash inflows equals the original investment. Projects with higher IRR values are generally considered better than projects with lower IRR values. IRR assumes that cash inflows are reinvested at the IRR value.