what is the difference between npv and internal rate of return irr 
npv and internal rate of return irr are closely related concepts in that the irr of an investment is the discount rate that would cause that investment to have an npv of zero another way of thinking about the differences is that they are both trying to answer two separate but related questions about an investment for npv the question is what is the total amount of money i will make if i proceed with this investment after taking into account the time value of money for irr the question is if i proceed with this investment what would be the equivalent annual rate of return that i would receive 