Internal Rate of Return (IRR)

Expressed as a percentage, an investment's IRR, or internal rate of return, is a measure of the return on each dollar invested for each period that that dollar is invested. Additionally, the IRR is the discount rate that drives an investment's net present value, or NPV, to $0. Though very difficult to calculate by hand, IRR has become one of the leading metrics for real estate investors, as it's a good way to compare investments to one another while taking into account the time factor of money. CashFlow computes IRR as XIRR, whereas: the cash flow amounts are monthly Net Levered (or Net Unlevered) Cash Flow and cash flow dates are the corresponding monthly dates. 

CashFlow allows users to take advantage of the concept of IRR in a variety of ways. For one, it's a "Core Metric" on the Return Summary report, and is expressed both levered and unlevered. Additionally, CashFlow can "back into" a purchase price on the Acquisition tab using an unlevered IRR.