The internal rate of return (IRR) or economic rate of return (ERR) is a rate of return used in capital budgeting to measure and compare the profitability of investments. It is also called the discounted cash flow rate of return (DCFROR) or the rate of return (ROR). In the context of savings and loans the IRR is also called the effective interest rate. The term internal refers to the fact that its calculation does not incorporate environmental factors (e.g., the interest rate or inflation).
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Famous quotes containing the words internal, rate and/or return:
“You will see Coleridge—he who sits obscure
In the exceeding lustre and the pure
Intense irradiation of a mind,
Which, with its own internal lightning blind,
Flags wearily through darkness and despair—
A cloud-encircled meteor of the air,
A hooded eagle among blinking owls.”
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“I find very reasonable the Celtic belief that the souls of our dearly departed are trapped in some inferior being, in an animal, a plant, an inanimate object, indeed lost to us until the day, which for some never arrives, when we find that we pass near the tree, or come to possess the object which is their prison. Then they quiver, call us, and as soon as we have recognized them, the spell is broken. Freed by us, they have vanquished death and return to live with us.”
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