# Internal Rate of Return - IRR provides the actual return on the projected cash flow. - Takes into account time-value of money - The result can be compared to the [[hurdle-rate]]. - IRR above hurdle rate, project is a go. - IRR = Hurdle Rate => [[present-value|NPV]] = 0 Available as an [Excel function](https://support.microsoft.com/en-us/office/irr-function-64925eaa-9988-495b-b290-3ad0c163c1bc) > [!caution] Bias! > > IRR method is biased towards shorter duration proposals.