internal rate of return
noun[CorU]
ukus(abbreviationIRR)ACCOUNTING,FINANCE
theaverageamountofmoneyearnedeachyearfrom aparticularinvestment,calculatedbycomparinghow muchmoneyit makes eachyearwith theoriginalamountinvested:
Privateequityaimstoproduceaninternalrateofreturnof about 20% ayear.
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