See INNTERNAL RATE OF RETURN.

Method to calculate the expected return on an investment.

(1) The discount rate that equates the Present Value of expected future cash flows to the cost of the investment outlay. A measure of investment yield. (2) Because of the importance, “mystery” and lack of understanding of this term, especially among professionals, we have included a special section on this at the end of this glossary. This is the best explanation we have seen and is reproduced with the kind permission of leading property analysts, Property Investment Research.

The internal rate of return (IRR) represents the discount rate at which the present value of the loan cash flows (P&I payments and balloon payment) equals the purchase price of the loan. The IRR represents the true yield on the prospective investment, and will usually be the same rate as the loan coupon if the purchase price of the loan is the same as the current balance of the loan. If you're purchasing a loan at a premium, the IRR will be less than the coupon. The converse is true if you purchase the loan at a discount to its current principal balance.

The IRR would give the rate of return that a policy generates. This is one way of comparing returns when benefits and premiums are different. (Would otherwise be very difficult to compare)

Internal rate of return. The average annual compound rate of return received by an investor over the life of their investment. This is a key indicator used by institutions in appraising their investments.

Internal Rate of Return â€“ The discount rate that sets the net present value of the stream of net benefits equal to zero.

Internal Rate of Return; the discount rate at which positive and negative flows are matched.

Internal Rate of Return. This is a post tax percentage increase that an investor expects on their money. So if amount X is invested, and is worth amount X+y after a year, the Internal Rate of Return which that investment has achieved is y/X

See internal rate of return.

Internal Rate of Return. A calculation that determines the rate of return on a portfolio investment or or on the total venture fund. If, for example, you, you put your money in a bank account that gives you 5.5 percent interest annually, you could say your IRR on that investment would be roughly 5.5 percent (not accounting for taxes or service fees). IRR is the most important measure of performance for a VC fund.

Compound Internal Rate of Return.

Internal rate of return â€“ yearly interest rate on a stream of payments.

Internal Rate of Return. The discount rate which would be need to be applied to a series of future cash flows in order for the Net Present Value to be equal to the capital investment. IRR is used to determine how attractive a potential investment is.

Internal Rate of Return. A typical measure of how VC Funds measure performance. IRR is a technically a discount rate: the rate at which the present value of a series of investments is equal to the present value of the returns on those investments.

Internal Rate of Return. A measurement of the return on an investment based on discounted cash flow, expressed as an annual percentage rate.

The discount rate that equates the net present value (NPV) of an investment's cash inflows with its cash outflows.

Internal rate of return. This is the discount rate that results in NPV =0. The IRR is the rate of interest that will make the present value of the cash proceeds expected from an investment equal to the present value of cash outlays required by the investment. This method does not require any assumptions about reinvestment or discount rates (Winston, 1995). The general rule is to accept projects with an IRR greater than the cost of capital or minimum acceptable rate of return (Brown, 1994).

Internal rate of return This is a discount rate equalising, on a given date, two series of financial flows from the investments: capital payments and distributions on given dates.

The internal rate of return of a project is the discount rate which makes makes its net present value equal to zero. The IRR method is a popular discounted cash flow method, that takes into account the time value of money and also considers the cash flow stream in its entirety.

Internal Rate of Return, part of ROI Return On Investment

Internal Rate of Return: Interest rate that discounts future cash flows to zero. It represents the amount that we expect to earn on our investment over the life of the business.

internal rate of return. -- View Real Estate Listings