 internal rate of return

internal rate of return (IRR)A compound rate of interest worked out over the life of a private equity fund reflecting both the investment return and the rate at which the return is produced.The IRR is calculated by way of an iterative mathematical formula which values, at the date of exit, the cash spent by the private equity provider (usually subscription monies for shares and loan stock in the new company) and cash returned (usually interest, dividends, share or loan stock redemptions and share sale proceeds). The IRR is the discount factor which, when applied to these cash flows, produces a net present value equal to zero. It is broadly equivalent to a notional rate of compound annual interest earned on money invested.+ internal rate of return (IRR), used as the measure of return on the investment made by shareholders in a PFI/PPP consortium.Related links
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
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internal rate of return — ( IRR) A measure of yield that relates the cash flow from each interest payment and the cash flow from the investment s redemption value at maturity to the purchase price of the investment. It is a present value calculation that reflects the time … Financial and business terms
Internal rate of return — The internal rate of return (IRR) is a capital budgeting metric used by firms to decide whether they should make investments. It is an indicator of the efficiency or quality of an investment, as opposed to net present value (NPV), which indicates … Wikipedia
Internal rate of return — Dollar weighted rate of return. Discount rate at which net present value ( NPV) investment is zero. The rate at which a bond s future cash flows, discounted back to today, equals its price. The New York Times Financial Glossary * * * internal… … Financial and business terms
Internal Rate of Return — A widely used rate of return for performing economic analysis. This method solves for the interest rate that equates the equivalent worth of an alternative s cash receipts or savings to the equivalent worth of cash expenditures, including… … Energy terms
internal rate of return — IRR An interest rate that gives a net present value of zero when applied to a projected cash flow of an asset, liability, or financial decision. This interest rate, where the present values of the cash inflows and outflows are equal, is the… … Accounting dictionary
internal rate of return — IRR An interest rate that gives a net present value of zero when applied to the projected cash flow from an asset, liability, or financial decision. This interest rate, where the present values of the cash inflows and outflows are equal, is the… … Big dictionary of business and management
internal rate of return — vidinė grąžos norma statusas T sritis turto vertinimas apibrėžtis Diskonto norma, kuriai esant investicijų būsimų pinigų srautų dabartinė vertė yra lygi investicijų objekto įsigijimo sąnaudoms. atitikmenys: angl. internal rate of return ryšiai:… … Lithuanian dictionary (lietuvių žodynas)
internal rate of return — IRR The *rate of return on an investment derived by comparing the *net present value of future, incremental cash flows with the initial investment. Under IIR analysis, the IIR is used as a *hurdle rate, and an investment is normally accepted only … Auditor's dictionary
Internal rate of return — The interest rate at which the calculated present value of a cash flow equals the initial investment in a product. Also known as the IRR … International financial encyclopaedia
internal rate of return — (IRR) Discount rate at which the present value of future cash flows from an investment equals the cost of the investment … American business jargon