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).
Read more about Internal Rate Of Return: Definition, Uses, Calculation, Problems With Using Internal Rate of Return, Mathematics
Famous quotes containing the words internal, rate and/or return:
“I maintain that I have been a Negro three times—a Negro baby, a Negro girl and a Negro woman. Still, if you have received no clear cut impression of what the Negro in America is like, then you are in the same place with me. There is no The Negro here. Our lives are so diversified, internal attitudes so varied, appearances and capabilities so different, that there is no possible classification so catholic that it will cover us all, except My people! My people!”
—Zora Neale Hurston (1891–1960)
“At the rate science proceeds, rockets and missiles will one day seem like buffalo—slow, endangered grazers in the black pasture of outer space.”
—Bernard Cooper (b. 1936)
“I have often wondered how they manage to get return envelopes which miss, by one-quarter of an inch, fitting the blank you are supposed to return. They say, “Please fill out and return the enclosed envelope,” and the enclosed envelope is always one-quarter of an inch too small.”
—Robert Benchley (1889–1945)