internal rate of return

British  

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

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Example Sentences

The firm’s multistrategy fund’s private-equity strategy had an estimated gross internal rate of return of 55% for the decade ended Dec. 31, 2025.

From The Wall Street Journal • Mar. 20, 2026

My picks have an internal rate of return of more than twice that amount, and are less volatile than the market.

From Barron's • Jan. 16, 2026

Right now, that analysis indicates a 6.8% internal rate of return for the market over the next five years.

From Barron's • Jan. 9, 2026

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.

From MarketWatch • Nov. 18, 2025

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.

From The Wall Street Journal • Oct. 5, 2025