What Is Internal Rate of Return (IRR)?

Internal Rate of Return or IRR is a financial metric used to discount capital budgeting and to make the net present value of all future cash flows equal to zero. For this reason, it is used alongside a Discounted Cash Flow analysis. IRR is an estimate of the rate of return that an investment is expected to provide. Usually a higher IRR means a more profitable investment.

**To learn more about this concept and become a master at LBO modeling, you should check out our LBO Modeling Course. Learn more here.**

Module 1: Introduction

Module 2: LBO The Big Picture

Module 3: Valuation and Transaction Assumptions

Module 4: Sources and Uses: The Theory

Module 5: Sources and Uses: Application to Nike Case

Module 6: P&L Projections & LBO Adjustments

Module 7: Debt Schedule

Module 8: Balance Sheet and Adjustments

Module 9: Taxes

Module 10: Exit, Returns, & Sensitivity Analysis

Bonus Module A) Purchase Price Accounting

Bonus Module B) Dividend Recap

Bonus Module C) Add-on Acquisition Build

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