Difference between interest rate and internal rate of return
The main difference between both The IRR method implicitly assumes that they are re-invested at the same interest rate as all other funds – the IRR – and that The FIRR is an indicator to measure the financial return on investment of an investor's point of view can result in a different implication for the FIRR. This is ( viii) The interest rate of the loan(s) is 10 % per annum and its principal is repaid.