The IRR measures profit. It therefore measures return "on" investment and not capital recovery. However, any investment that returns more than it cost will be a profitable investment and will have an IRR that is both positive and measurable. Lets consider the following example. Suppose that you purchase an apartment complex at the beginning of Year 1 (or the end of Year 0) for $698. You expect to earn $15,000 per year for the next 4 years at the end of each year, but at the end of the year 5 years from now you expect cash flows to equal $115,000. Here is what these cash flows look like in a table:

n	amount
CF0	$ (698)
CF1	$ 15,000
CF2	$ 15,000
CF3	$ 15,000
CF4	$ 15,000
CF5	$ 115,000

Compute the IRR and report it as a percent .