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IRR Internal Rate of Return in 3 minutes Imagine you found a wizard with a boat on a magic river For every $100 you gave the wizard.. He would give you back $10/year FOREVER and ever! So how much % do you get every year? 10%. Because $10 is 10% of $100. Guess what? This 10% is called your RATE of RETURN (careful, this is not yet your INTERNAL rate of return) So this 10% Rate of Return tells you HOW QUICKLY you get back your money in EXACTLY 1 year compared to your original $100. So this 10% Rate of Return tells you HOW QUICKLY you get back your money in EXACTLY 1 year compared to your original $100. Now what if It wasnt that simple What if the wizard brought you back a different amount every year? On some lucky years, he might bring back $70 On other years, he might bring back only $5.. And what if It was NOT forever? What if it was for exactly 7 years? What is your % Rate of Return now? Not so easy to know now, right? Its like the rate of return is now HIDDEN This hidden r