For an investor, an IRR calculation can measure the return on their portfolio. As an example if you had invested $100,000 that grew to $200,000 at the end of five years, the IRR, (in simple terms) would be the interest rate required to grow $100,000 to $200,000 over five years (14.87%).
You could then compare that IRR to returns you could have had in other investments.
If your portfolio had lost money, her IRR calculation would result in a negative number.
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