The IRR (Internal Rate of Return) is an important financial indicator for assessing the profitability of an investment or project. It indicates the annual effective interest rate required to bring the present value of expected future cash flows to zero. The IRR enables investors to analyze the return prospects of an investment and compare it with other investment opportunities. A higher value indicates a more attractive investment, while a lower one may imply that the return expectations may not be met. The IRR is an important indicator for profitability and for making investment decisions. It enables the comparison of investment projects with different cash flows and is therefore used to assess the profitability of alternative investments.