TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

internal rate of return method [1 record]

Record 1 2008-12-04

English

Subject field(s)
  • Investment
CONT

The internal rate of return (IRR) method of analyzing a major purchase or project allows you to consider the time value of money. Essentially, it allows you to find the interest rate that is equivalent to the dollar returns you expect from your project. Once you know the rate, you compare it to the rates you could earn by investing your money in other projects or investments.

French

Domaine(s)
  • Investissements et placements
DEF

Méthode d'évaluation de la rentabilité d'un projet d'investissement qui repose sur le taux de rendement interne du projet et qui permet de choisir entre plusieurs investissements projetés en comparant leur taux de rendement interne.

OBS

Un projet d'investissement n'est généralement acceptable que si son taux de rendement interne excède le coût du capital requis pour son financement.

Spanish

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TERMIUM Plus®, the Government of Canada's terminology and linguistic data bank
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