Why internal rate of return is important? 1.72K viewsCorporate Finance0 Stanton 0 Comments Internal Rate of Return (IRR) seems to be quite widespread and commonly used. What makes it useful? Is it more effective than NPV? 1 AnswerActiveVotedNewestOldest 0 Andrew216 Posted 0 Comments It’s not more useful. You could say that they say the same story in a different way though. NPV shows what you get from investing in a project. IRR shows the rate at which you need to borrow your money in order for the project to have nil return. Register or Login Search for: