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A Refresher on Internal Rate of Return

Harvard Business Review

There are a variety of methods you can use to calculate ROI — net present value , payback, breakeven — and internal rate of return , or IRR. The IRR is the rate at which the project breaks even. If the IRR is higher, it’s a worthwhile investment. Finance & Accounting Article. How is it calculated?

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Three Headwinds for Facebook's IPO

Harvard Business Review

For every 10 investments, a good firm may have one defining investment, returning hundreds of percent in IRR. Venture investors look for home runs. They invest millions in the hopes of achieving billions in returns. However, the public market investor is looking for very different opportunities.

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