[Verse 1] Sarah's got a million dollars burning in her hand Private equity calling with investment plans They promise returns that sound so sweet But how do we know if they can compete She needs a number that tells the real story A rate that reveals where lies the glory [Chorus] IRR, IRR, Internal Rate of Return The magic number that makes profits burn It's the discount rate where NPV turns zero IRR, IRR, that's our financial hero Higher is better, that's the golden rule IRR, IRR, the investor's power tool [Verse 2] Think of it like this, it's not so hard You plant your money like seeds in the yard IRR tells you the growth rate you'll achieve From the day you invest till the day you leave If the fund says twenty percent IRR That means your money grows that far each year [Chorus] IRR, IRR, Internal Rate of Return The magic number that makes profits burn It's the discount rate where NPV turns zero IRR, IRR, that's our financial hero Higher is better, that's the golden rule IRR, IRR, the investor's power tool [Bridge] Cash flows out when you invest your stake Cash flows in from the returns they make Find the rate that makes present value equal To your initial investment, that's the sequel Twenty-five percent beats fifteen any day IRR comparison shows you the way [Verse 3] Fund A promises thirty percent return Fund B says twenty, which way do you turn Compare their IRRs side by side Let the higher number be your guide But remember timing matters too Early cash flows add more value through [Final Chorus] IRR, IRR, Internal Rate of Return The magic number that makes profits burn It's the discount rate where NPV turns zero IRR, IRR, that's our financial hero Higher beats lower, that's the golden rule IRR, IRR, now you've got the tool [Outro] From private equity to your CFA IRR will guide you on your way Internal Rate of Return today Makes investment choices child's play
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