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English definition of “internal rate of return”

internal rate of return

noun [C or U]
 
 
( abbreviation IRR)
ACCOUNTING, FINANCE the average amount of money earned each year from a particular investment, calculated by comparing how much money it makes each year with the original amount invested: Private equity aims to produce an internal rate of return of about 20% a year. → Compare present value
(Definition of internal rate of return from the Cambridge Business English Dictionary © Cambridge University Press)
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