Internal rate of return

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Internal rate of return (also known by its acronym, IRR) is the discount rate that forces a project's NPV to equal zero.

Definitions

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Internal rate of return (IRR). The discount rate that forces a project's NPV to equal zero.

Related concepts

Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.

Related lectures

Introduction to Financial Management.

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