INTERNAL RATE OF RETURN Definition

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INTERNAL RATE OF RETURN (IRR) is the discount rate that makes the project have a zero Net Present Value (NPV). IRR is an alternative method of evaluating investments without estimating the discount rate. IRR takes into account the time value of money by considering the cash flows over the lifetime of a project. The IRR and NPV concepts are related but they are not equivalent.

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REQUISITION is a written request to buy something. Usually, once approved, the requisition is then transformed into a purchase order.

DEMAND DEPOSIT is a bank deposit from which withdrawals may be made without notice.

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