Internal Rate of Return Definition:

The discount rate at which the net present value of an investment project is zero; thus, the internal rate of return represents the interest Yield promised by a project over its useful life. This term is synonymous with time-adjusted rate of return.

Other Related Accounting Articles:

• Yield Definition
• Required Rate of Return Definition
• Balloon Interest
• Fixed Rate Bond
• Simple Rate of Return Definition
• Target Return
• Balloon Loan
• Asset Retirement Obligation
• Compound Annual Growth Rate
• Annual Return over an Investment