For example, if a company's WACC is 5% and an investment has an IRR of 10%, then it could be worth raising capital to get that higher return.

The internal rate of return (IRR) measures the return of a potential investment while excluding external factors. IRR helps investors estimate how profitable an investment is likely to be. All ...

The rate of return measures how much a given portfolio or asset has changed in value over time. For example, if you invest $1 and have $1.10 a month later, your rate of return is 10%.

However, CAGR calculates the mean annual growth rate of investment for a specific period of time, while XIRR measures return on investments with irregular cash flows on different dates.