The internal rate of return (IRR) or economic rate of return (ERR) is a rate of return used in capital budgeting to measure and compare the profitability of investments. It is also called the discounted cash flow rate of return (DCFROR) or the rate of return (ROR). In the context of savings and loans the IRR is also called the effective interest rate. The term internal refers to the fact that its calculation does not incorporate environmental factors (e.g., the interest rate or inflation).
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“The real essence, the internal qualities, and constitution of even the meanest object, is hid from our view; something there is in every drop of water, every grain of sand, which it is beyond the power of human understanding to fathom or comprehend. But it is evident ... that we are influenced by false principles to that degree as to mistrust our senses, and think we know nothing of those things which we perfectly comprehend.”
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“Put God in your debt. Every stroke shall be repaid. The longer the payment is withholden, the better for you; for compound interest on compound interest is the rate and usage of this exchequer.”
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“In my walks I would fain return to my senses.”
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