Internal Return Rate definition
Internal Return Rate means the effective compound annual rate of return when payments are made in an irregular period, or the rate of return that determines the present net value of all cash flows (positive and negative) from an investment. Similarly, the discount rate in which the net present value of the future cash flows is equal to the initial investment; and also the discount rate in which the total present value of the cost equals the negative cash flows (gross present value) of the interest (positive cash flows).