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internal rate of return

   Also found in: Medical, Legal, Financial, Acronyms, Encyclopedia, Wikipedia 0.01 sec.
internal rate of return
n
(Economics, Accounting & Finance / Banking & Finance) an interest rate giving a net present value of zero when applied to the expected cash flow of a project. Its value, compared to the cost of the capital involved, is used to determine the project's viability


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Highlights of the Star Diamond Project pre-feasibility study include probable mineral reserves of 171 million tonnes at a weighted average grade of 12 carats per hundred tonnes, total diamond production of 20 million carats over a 12 year total mine life and a pre-tax base case net present value of $474 million for an Internal Rate of Return of 12%, says the company.
Of special note are the two new chapters on capital budgeting analysis techniques of net present value (NPV) and internal rate of return (IRR) set out in clear, comprehensive, 'reader friendly' exampled explanations.
This represents a return on capital of 160% and an Internal Rate of Return (IRR) of 98%.
 
 
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