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IRR

   Also found in: Dictionary/thesaurus, Acronyms, Wikipedia 0.01 sec.
IRR (1)
The ISO 4217 currency code for the Iranian Rial.

IRR (2)

IRR
ISO 4217 code for the Iranian rial. Issued to replace the qiran in 1932, it was pegged to the British pound at various rates until 1945. After this, it was pegged to the U.S. dollar until 1975. Since the Islamic Revolution in 1979, the rial has been marked by high inflation and low value.

IRR

Internal Rate of Return (IRR)

What Does Internal Rate of Return Mean?

The discount rate often used in capital budgeting that makes the net present value of all cash flows from a particular project equal to zero. Generally, the higher a project's internal rate of return is, the more desirable it is to undertake. Thus, IRR can be used to rank potential projects. Assuming all factors are equal, the project with the highest IRR probably would be considered the best and would be undertaken first. IRR sometimes is referred to as the economic rate of return (ERR).

Investopedia explains Internal Rate of Return

One can think of IRR as the rate of growth a project is expected to generate. Although the actual result may differ from the estimated IRR rate, a project with a substantially higher IRR value than other available options still will provide a much better chance for strong growth. IRRs also can be compared against prevailing rates of return in the securities market. If a firm cannot find any projects with IRRs greater than the returns that can be generated in the financial markets, it may choose to invest its retained earnings in the market.

Related Terms:
Discount Rate
Discounted Cash FlowDCF
Interest Rate
Modified Internal Rate of ReturnMIRR
Present Value Interest FactorPVIF



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Mobarakeh Steel's hot rolled coil -- for 60 days delivery ex-works -- sold at IRR 5,790,000/ton ($579/t), about $10 lower than the previous week.
He was also the chief executive officer of IRR Corporate & Public Finance.
His topics include annuities, deriving mortgage formulas from the IRR equation, new and existing methods for solving the IRR equation and their application, the computational efficiency of algorithms, climbing to a conceptual level in understanding rate of return, positioning the geometric linking, and measuring risk.
 
 
 
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