Why internal rate of return is important? 1.28K viewsCorporate Finance 0 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 Answer ActiveVotedNewestOldest 0 Andrew211 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: