This video provides an insightful guide on calculating the Internal Rate of Return (IRR) for projects, using both formulaic and calculator methods. It features two illustrative examples: one centered on a growing annuity and another on perpetual cash flows. Key Takeaways: Understanding IRR: The video highlights IRR as a vital concept in capital budgeting. It is defined as the discount rate that makes the Net Present Value (NPV) of a project equal to zero. Calculation Methods: Two primary methods for determining IRR are illustrated: Formula Method: The first example employs the growing annuity formula, while the second utilizes the perpetuity formula. Calculator Method: This method demonstrates the use of the Cash Flow (CF) and IRR functions. Example 1 - Growing Cash Flows: The initial example covers IRR calculation for a project with increasing annual cash flows, emphasizing the necessity of adjusting for the growth rate in the calculator method. Example 2 - Perpetual Cash Flows: The second example illustrates IRR calculation for a project with perpetual cash flows. It showcases both the perpetuity formula and an alternative method using the calculator's CF function with a large frequency value. Investment Decision-Making: The video underscores the significance of IRR in investment decisions, explaining how comparing the IRR to a company's discount rate aids in determining whether to accept or reject a project.