In this video, we dive deep into the Internal Rate of Return (IRR) and explore how it impacts capital budgeting decisions, particularly with two mutually exclusive projects. We walk through the process of drawing an NPV vs. IRR graph, finding the crossover rate, and using key rules to compare NPVs. This is an essential concept for finance exams, including undergrad courses, MBA programs, and CFA Level 1. Whether you’re studying for a final exam or a group project, this video will help you visualize and understand how IRR and NPV interact.