FIRR financial internal rate of return refers to the discount rate that the sum of the present value of financial net cash flows in each year is equal to zero, even if the financial net present value of the project is equal to zero.
IRR is the discount rate that the total present value of capital inflow is equal to the total present value of capital flow and the net present value is equal to zero. Internal rate of return (IRR) is the expected rate of return on investment and the discount rate that makes the net present value of investment projects equal to zero.
Financial internal rate of return (FIRR). The financial internal rate of return refers to the discount rate and financial internal rate of return in which the sum of the present value of financial net cash flows in each year in the whole calculation period is equal to zero; The financial internal rate of return is a dynamic index reflecting the actual rate of return of the project, and the bigger the index, the better.