Definition of Internal Rate of Return (IRR)

Definition of Internal Rate of Return (IRR)

Definition: What is the Internal Rate of Return

The internal rate of return is the discount rate which management uses to identify what capital investment will yield an acceptable return and be worth pursuing.

Definition of Internal Rate of Return (IRR)

For a specific project, the internal rate of return equates the net present value of future cash flow from project to zero. IRR is the simple ratio which companies use in term of capital investment.

Financial Ratio is a forum where you will learn about all ratios definitions and formulas.

Spread the love

Leave a Comment