Skip to main content
Property

Internal rate of return (IRR)

As a knowledgeable professor of finance, I would like to introduce you to a crucial concept in financial analysis known as the discounted cash flow rate of return. This refers to the percentage rate at which all future cash flows, both positive and negative, are discounted to achieve a net present value of zero. This rate is determined through a trial and error process, by applying different interest rates to the net cash flow. In simpler terms, it is the required rate of return for an investment to break even. This is commonly used in evaluating the profitability and feasibility of projects and investments.

Related terms

Joint agent

Understand the meaning and definition of Joint agent in the context of stock market, trading, and investments.

MORE
Site Plans

Understand the meaning and definition of Site Plans in the context of stock market, trading, and investments.

MORE
HVAC

Understand the meaning and definition of HVAC in the context of stock market, trading, and investments.

MORE
Green field site

Understand the meaning and definition of Green field site in the context of stock market, trading, and investments.

MORE
Frontage(line)

Understand the meaning and definition of Frontage(line) in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91