Internal Rate Of ReturnThe Internal Rate Of Return is the rate of interest which results in a zero net cash flow of a set of discounted cash inflows compared with the original capital outflow (investment).Another view is that the Internal Rate of Return is the discount rate which equates the present value of a stream of incomes to an initial investment. In special cases it can be the breakeven rate of interest. If the Internal Rate of Return is less than the minimum required return from a project, with a given risk profile, then the project would not be undertaken. The Internal Rate of Return Calculator below makes the following assumptions:
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