IRR - .LikeNPVandP.I,wealso ..Before

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Internal rate of return is very advance method of  capital budgeting  and it is based on time value of  money . Like  NPV  and  P.I.,  we also  calculate the present value of  cash  inflows and cash outflows in this method. But this method is purely different from NPV and PI. Before  understanding this method of evaluation of  investment  projects , you should know what is internal rate of return.  Definition of Internal Rate of Return   If you have read the books of financial management of MBA or B.Com. class, you can give the definition of internal rate of return. Like other  writers, I can also write that internal rate of return is the rate at which the present value of all cash inflows is equal to the present value of all  cash outflows. After finding internal rate of return, we will accept that investment project whose internal rate will high or if there is only one 
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