Internal Rate Of Return

From Open Risk Manual

Definition

Internal Rate Of Return. The discount rate that results in a Net Present Value of zero for a series of future cash flows.

This is not a figure given out as market data but is at the center of many definitions of financial debt instrument analytics. This is the inverse of Net Present Value (NPV). NPV is expressed in monetary units while IRR is expressed in percentage.

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This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.