Meaning of “internal rate of return” in the English Dictionary


"internal rate of return" in Business English

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internal rate of returnnoun [ C or U ]

uk us 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.

(Definition of “internal rate of return” from the Cambridge Business English Dictionary © Cambridge University Press)