Internal rate of return/Definition: Difference between revisions

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imported>Nick Gardner
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imported>Nick Gardner
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the [[discount rate]] which, if applied to a sequence of cash flows, makes the net [[net present value]] of those cash flows equal to zero.
the [[discount rate]] which, if applied to a sequence of cash flows, makes the [[net present value]] of those cash flows equal to zero.

Latest revision as of 04:24, 11 July 2010

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Internal rate of return [r]: the discount rate which, if applied to a sequence of cash flows, makes the net present value of those cash flows equal to zero.