The internal rate of return (IRR) is a capital budgeting metric used by firms to decide whether they should make investments. It is an indicator of the efficiency of an investment, as opposed to net present value (NPV), which indicates value or magnitude. The IRR is the annualized effective compounded return rate which can be earned on the invested capital, i.e., the yield on the investment.

The Menu Map for the HP 20b IRR Menu.

Press [IRR] key and the HP20b will display IRR%= which is the Internal Rate of Return. This is the discount rate for the cash flow that returns a Net Present Value of 0.

Note: If you press [NPV] key before entering cash flows, you will be redirected to the cash flow menu to enter values into the cash flow list.