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).

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### Other articles related to "internal rate of return, rate of return, internal rate, of return, rate, rates":

**Internal Rate Of Return**- Mathematics

... 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 ...

**Internal Rate of Return**

... 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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