Internal Rate of Return Method Definition | Becker

Accounting Dictionary

Internal Rate of Return Method

The internal rate of return method is a capital budgeting method that determines the rate of return of an investment's or project's cash flows. The internal rate of return method is the inverse of the net present value method because it determines the rate at which the net present value of the investment is zero. See also net present value method and hurdle rate of return.

Related Terms:

Net Present Value Method (NPV) [BAR]Hurdle Rate of Return [BAR]Back to Dictionary

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