IRR

Definition

Internal Rate of Return. The rate of return that would make the present value of future cash flows plus the final market value of an investment or business opportunity equal the current market price of the investment or opportunity. also called dollar-weighted rate of return.

Use IRR in a sentence

The internal rate of return is a good way to assess a particular capital project and decide if it will bring the company enough return to beat out the cost of the project.

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pooled internal rate of return (PIRR) modified internal rate of return (MIRR)