| 单词 | internal rate of return |
| 释义 | internal rate of return = (IRR) The interest rate at which the net present value of a project is zero. If the net cash flow on a project starts off negative, and once it becomes positive it remains so, the IRR is unique; but if cash flow at the end becomes negative, as can happen if there are costs of making a plant safe after its useful life is over, the IRR may not be unique. A project is worth investing in if its IRR is greater than the rate of interest, including an appropriate risk premium. |
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