The Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of an investment. It represents the discount rate at which the net present value of all cash flows from the investment equals zero. In simpler terms, IRR is the rate at which an investment breaks even, helping investors determine whether a project is worth pursuing. Investors often compare the IRR to their required rate of return or the cost of capital. If the IRR exceeds this benchmark, the investment is considered attractive. Conversely, if the IRR is lower, it may indicate that the investment is not worthwhile compared to other opportunities or risks.