Abstract
The internal rate of return of an investment project is that discount rate or rate of interest Y which makes the stream of net returns xt associated with the project equal to a present value of zero. It is the solution for i in the following equation in which indicates the physical lifetime of the investment project.
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Hagemann, H. (2018). Internal Rate of Return. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_798
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DOI: https://doi.org/10.1057/978-1-349-95189-5_798
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