Below please find a definition of “Internal Rate of Return”
Internal Rate of Return: There are various investments that create fluctuating amounts of cash flow and for these kinds of investments the rate of return need to be determined. The method of determining the rate of return for these investments is termed as Internal Rate of Return. The formula for calculating IRR is complicated but a general formula that is in practice is as follows: Factor of internal rate of return = Investment required / Net annual cash inflow.
Free MP3 Download: To download our free 35 minute audio interview with expert Richard C. Wilson on how to succeed in the field of finance please click here.
Fast Financial Training: If you want to take your finance or business career to the next level you should explore our financial analysis certification program, or our training programs on financial modeling, investment banking, hedge funds, or private equity. All of these programs are offered on https://BusinessTraining.com
Expand Your Financial Vocabulary: Read more finance terms and definitions
Tags: What is internal rate of return?, Internal rate of return definition, Internal rate of return example, Internal rate of return formula, Internal rate of return calculator, Internal rate of return defined