# Internal rate of return

Internal rate of return
Dollar-weighted rate of return. Discount rate at which net present value ( NPV) investment is zero. The rate at which a bond's future cash flows, discounted back to today, equals its price. The New York Times Financial Glossary

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► See IRR.

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internal rate of return UK US noun [C or U] (ABBREVIATION IRR)
ACCOUNTING, FINANCE the average amount of money earned each year from a particular investment, calculated by comparing how much money it makes each year with the original amount invested: »

Private equity aims to produce an internal rate of return of about 20% a year.

Compare PRESENT VALUE(Cf. ↑present value)

Financial and business terms. 2012.

### Look at other dictionaries:

• internal rate of return — ( IRR) A measure of yield that relates the cash flow from each interest payment and the cash flow from the investment s redemption value at maturity to the purchase price of the investment. It is a present value calculation that reflects the time …   Financial and business terms

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• Internal rate of return — The internal rate of return (IRR) is a capital budgeting metric used by firms to decide whether they should make investments. It is an indicator of the efficiency or quality of an investment, as opposed to net present value (NPV), which indicates …   Wikipedia

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• internal rate of return — IRR An interest rate that gives a net present value of zero when applied to a projected cash flow of an asset, liability, or financial decision. This interest rate, where the present values of the cash inflows and outflows are equal, is the… …   Accounting dictionary

• internal rate of return — IRR An interest rate that gives a net present value of zero when applied to the projected cash flow from an asset, liability, or financial decision. This interest rate, where the present values of the cash inflows and outflows are equal, is the… …   Big dictionary of business and management

• internal rate of return — vidinė grąžos norma statusas T sritis turto vertinimas apibrėžtis Diskonto norma, kuriai esant investicijų būsimų pinigų srautų dabartinė vertė yra lygi investicijų objekto įsigijimo sąnaudoms. atitikmenys: angl. internal rate of return ryšiai:… …   Lithuanian dictionary (lietuvių žodynas)

• Internal Rate Of Return - IRR — The discount rate often used in capital budgeting that makes the net present value of all cash flows from a particular project equal to zero. Generally speaking, the higher a project s internal rate of return, the more desirable it is to… …   Investment dictionary

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• incremental internal rate of return — internal rate of return ( IRR) on the incremental investment from choosing a larger instead of a smaller project. Bloomberg Financial Dictionary …   Financial and business terms

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