Internal rate-of-return method

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Internal rate-of-return method (IRR method) is capital budgeting discounted cash flow (DCF) method that calculates the discount rate at which the present value of expected cash inflows from a project equals the present value of its expected cash outflows.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Internal rate-of-return method (IRR method). Capital budgeting discounted cash flow (DCF) method that calculates the discount rate at which the present value of expected cash inflows from a project equals the present value of its expected cash outflows.
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