The internal rate of return is dead. Long live the IRR.

“Hey, the IRR looks soooo close to the DaRC!” Michele observed.

Michele is our chief technology officer at XTAL Strategies, and I had never asked him to compute and include private equity’s internal rate of return (IRR) in our lines of code before. I had handled that. Now he was working on our new analytics dashboard, which is usually engineered exclusively on duration-adjusted return on capital (DaRC) algorithms, and noticed the similarities.

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