internal rate of return

noun

1. 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

Example Sentences

Haissl said AWS is better-positioned than Azure because Amazon uses its custom Trainium chips to run AI workloads, leading to a higher internal rate of return as it avoids paying third-party chip suppliers.

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Thermo Fisher expects the synergies of the combination to offer a double-digit internal rate of return, and said that it should be immediately accretive to adjusted operating margin.

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One metric is called the “internal rate of return,” which reflects returns on chunks of investor money as they go in and out of the fund.

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Critics say the internal rate of return can be inflated by the use of “subscription credit lines,” which allow funds to borrow money against investors’ committed capital in order to smooth out the capital-call timing.

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The internal rate of return can also be inflated by taking profits on big winners early in a fund’s life.

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