net internal rate of return (net IRR)

Definition

An interest rate in which the difference between the positive (future cash returns) and negative (investment cost) cash flow of an investment equals zero. Consequently, it measures the potentials of an investment to bring profit. Therefore, if the net IRR surpasses a company's rate of return then the investment has good potentials. On the contrary, where the net IRR is below the expected rate of return, then such investment is not worthwhile.

Use this term in a sentence

You should always strive to get the best net internal rate of return on any deal that you take on.

​ Was this Helpful? YES  NO 11 people found this helpful.

I was asked what the net internal rate of return was and I told them that I needed more time to calculate it.

​ Was this Helpful? YES  NO 11 people found this helpful.

Our new project had a net internal rate of return so we were tasked with coming up with ways in increase the return.

​ Was this Helpful? YES  NO 8 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
net interest spread net investment