👉 Delivering IOR, or Internal Rate of Return, is a financial metric used to evaluate the profitability of potential investments or cash flows over time. It represents the discount rate that makes the net present value (NPV) of all cash inflows and outflows from a project equal to zero. In simpler terms, it's the expected rate at which the investment will generate returns, taking into account the time value of money. A higher IOR indicates a more profitable investment, as it suggests a greater return relative to the initial outlay or risk involved. Calculating IOR involves discounting all future cash flows back to their present value and summing them up, then solving for the interest rate that results in a net present value of zero. This metric is crucial for comparing different investment opportunities and making informed financial decisions.
