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internal rate of return

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Internal rate of return (IRR)
Dollar-weighted rate of return. Discount rate at which net present value (NPV) investment is zero. The rate at which a bond's future cash flows, discounted back to today, equal its price.

internal rate of return (IRR)
The rate of discount on an investment that equates the present value of the investment's cash outflows with the present value of the investment's cash inflows. Internal rate of return is analogous to yield to maturity for a bond.


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Sunset Tower produced a 42 percent internal rate of return for our investors.
The provisions that require certain nonregistered investment partnerships to compute and disclose internal rate of return, however, would be effective for annual financial statements issued for fiscal years beginning after December 15, 2003, with early application encouraged.
Material participation, without bonus depreciation Year 1 2 3 Rent income $ 4,162,610 $ 2,462,610 $ 2,462,610 Rent expense $ 3,818,681 $ 5,358,761 $ 3,864,050 Net income (loss) $ 343,929 $(2,896,151) $(1,401,439) Tax savings (expense) $ (132,757) $ 1,117,914 $ 540,956 Net cashflow, if leased $(1,608,421) $ (357,750) $ (934,709) Annual present values $(1,608,421) $ (331,250) $ (801,362) NPV cashflows, if purchased $ 2,923,933 Internal rate of return 32.
 
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