Internal rate of return, IRR ((See Chapters 17 and 26 of the Vernimmen))The discounting rate that makes net present value equal to zero is called the internal rate of return or yield to maturity (the IRR is applied to capital expenditure and the YTM to financial securities). IRR is used in investment choice: if the IRR of the investment is higher than the required rate of return, then the investment should be realised.
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Definitions of terms begining with the same letter as "Internal rate of return, IRR" :
IAS IASB IFRS IPO IPO discount IRR IRS IRS rate Identified purchase cost Idiosyncratic risk Ijara-wa-Iqtina Immunisation Impairment losses Impairment test Implicit rating In the money Incentive contracting Income Income statement Income stock Incoterms Incremental project Indenture Index management Index trackers Index-linked securities Indirect finance Indirect method Indirect valuation method Industrial synergy Industry risk Inflation Inflation risk Information cascade Informational efficiency Informational mimicry Initial public offering, IPO Inside shareholders Institutional investors Insurance Intangible asset Intangible capital Intangible fixed asset Interchangeability Interest Interest charge Interest cost pensions Interest cover Interest expense Interest rate Interest rate option Interest rate risk Interest rate swap rate, IRS rate Interest rate swap, IRS Interest-bearing current account Interim interest payments Intermediated debt Intermediation Internal capital Internal financing Internal growth model Internal rate of return, IRR International bond Intra-annual dividend Intra-group transactions Intrinsic risk Intrinsic value Intrinsic value option Intrinsic value share Inventories Inventories valuation methods Inverse floaters Invested capital Investment Investment banking Investment cycle Investment decision principles Investment grade Investment of funds method Investment outflows Investment outlay Investors Islamic finance Issue at a discount Issue at a premium Issue at par Issue discount Issue price Issuers and holders prefer the term High yield bonds. Istisnaa
Definition of Internal rate of return, IRR - Finance dictionary