# Internal Rate of Return Definition

Internal Rate of Return Definition is the reduction rates frequently used in capital budgeting that creates the net present value of the entire cash flows from an exacting project equivalent to zero. Usually speaking, the superior a project’s internal rate of return Definition, and the additional attractive it is to take on the project.

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