IRR measures the rate needed to break even on an investment. Calculate IRR by setting NPV to zero and solving for the discount rate. Use Excel's IRR function by inputting initial cost and cash inflow.

If you are curious about what is free cash flow, you must know its types. There are two main types: free cash flow to the Firm and Free Cash Flow to Equity. FCFF or Free Cash Flow to the Firm FCFF, or ...