Should depreciation and taxes be used when calculating an irr?

No, depreciation and taxes should not be included when calculating the Internal Rate of Return (IRR) because IRR focuses on cash flows generated by a project, rather than accounting profits. Depreciation is a non-cash expense, and taxes can vary based on the overall financial situation of the entity rather than the specific project being evaluated. Instead, the cash flows used in the IRR calculation should reflect the actual cash inflows and outflows associated with the investment.