what is the IRR of an investment project?

Answer 1

IRR shows how much return you can expect from that project. It can also indicate how robust is your project. Higher IRR means you project can withstand tougher situation with the same amount of current value. For example, your project will be less susceptible to escalated factors (e.g. high oil price, manufacturing cost, manpower salary) which are normally results from inflation rate. In fact, i use this method to calculate intrinsic value of my stock.

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Answer 2

The IRR is the discount rate such that when you discount all the cash flows back at that rate it gives you the price.