internal rate of return


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Related to internal rate of return: Net present value, Payback period

internal rate of return

n
(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
References in periodicals archive ?
A spokesperson for the IPPs Advisory Council, Dr Fatima KhushAnood, while commenting on the issue told Dawn that Nepra had approved 15pc dollar-based internal rate of return for IPPs over the period of 25 years and return on equity component of capacity purchase price was also calculated on the same basis.
The board extended the applicability of financial incentive of 20 percent dollar-based equity Internal Rate of Return (IRR) to all coal mining companies working in Thar Coalfield who can achieve financial close till 31st December, 2019.
"We have to make sure that the social benefit, the economic internal rate of return of any project is far better than the interest rates that we negotiate," Lambino said.
QATPL is setting up a 1,180 MW Re-Liquefied Natural Gas (RLNG) based Combined Cycle Gas Turbine (CCGT) power plant under the power generation policy-2015 based on the interim tariff which offers a guaranteed equity internal rate of return (IRR), cost indexation and pass-through structure in line with other IPPs projects.
The researchers compared costs of constructing single rooms or converting multi-patient rooms to private rooms, including subsequent annual operational costs, and then looked at the "internal rate of return" to assess the financial feasibility of the investment in private rooms.
The need of firms of all sizes to compute rate of return of an investment project is addressed by corporate finance, which provides firms' management everywhere--at least, everywhere there is a market economy--with such a tool as internal rate of return (IRR) index, which, as well as its several variations (EIRR, FIRR), is useful as far as simply determining rate of return size.
The launch comes on the heels of full deployment of Ethika Fund I, expected to deliver a net internal rate of return of 22.3 percent and a 2.
This is the culmination of an outstanding investment, and HCN is pleased to deliver a 15% unlevered internal rate of return to its shareholders through this opportunistic sale, said Tom DeRosa, CEO of HCN.
The project's internal rate of return is estimated at 13.5 percent, he added.Tarbela power station's installed capacity (3,478 MW) would rise to 4,888 MW after completing the under construction Tarbela 4th Extension and 6,298 megawatts after completing the 5th Extension.
Both the internal rate of return (IRR) and accounting rate of return (ARR) are more a measure of performance and reward criteria, while the payback period (PB) aims to measure project liquidity.
"We forecast that the fund will achieve an internal rate of return of 9-11 per cent per annum inclusive of semi-annual distributions throughout its life," he added.
The definitional concern comes when the article calls this discount rate the internal rate of return. As defined in the article (p.
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