The internal rate of return (IRR) or economic rate of return (ERR) is a rate of return used in capital budgeting to measure and compare the profitability of investments. It is also called the discounted cash flow rate of return (DCFROR) or the rate of return (ROR). In the context of savings and loans the IRR is also called the effective interest rate. The term internal refers to the fact that its calculation does not incorporate environmental factors (e.g., the interest rate or inflation).
Read more about Internal Rate Of Return: Definition, Uses, Calculation, Problems With Using Internal Rate of Return, Mathematics
Other articles related to "internal rate of return, rate of return, internal rate, of return, rate, rates":
... value of the investment is assumed to undergo exponential growth or decay according to some rate of return (any value greater than −100%), with discontinuities for ... Thus, internal rate(s) of return follow from the net present value as a function of the rate of return ... Towards a rate of return of −100% the net present value approaches infinity with the sign of the last cash flow, and towards a rate of return of positive ...
... The internal rate of return (IRR) is defined as the discount rate that gives a net present value (NPV) of zero ... all independent projects that have an IRR higher than the hurdle rate should be accepted ... In some cases, several zero NPV discount rates may exist, so there is no unique IRR ...
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