Internal Rate of Return  IRR
Internal Rate of Return (IRR)  the breakeven interest rate.
A primary measure of an investments worth (or value) is based on yield and known as the internal rate of return  IRR .
The internal rate of return can be defined as the breakeven interest rate which equals the Net Present Worth  NPW  (Net Present Value) of a project in and out cash flows.
P(i _{ rr } ) = F _{ cash_in }  F _{ cash_out }
= 0 (1)
where
i _{ rr } = internal rate of return
F _{ cash_in } = future cash flow in ( discounted )
F _{ cash_out } = future cash flow out ( discounted)
(1) can be expressed as
P(i _{ rr } ) = F _{ 0 } / (1 + i _{ rr } ) ^{ 0 } + F _{ 1 } / (1 + i _{ rr } ) ^{ 1 } + F _{ 2 } /(1 + i _{ rr } ) ^{ 2 } + .... + F _{ n } /(1 + i _{ rr } ) ^{ n }
= 0 (2)
where
F _{ 0..n } = cash flow in period 0 to n (positive value for cash flow in  negative value for cash flow out)
For a given cash flow equation (2) can be solved by iteration.
Cash Flow Internal Rate of Return Calculator
 money out  negative values
 money in  positive values
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Minimum Attractive Rate of Return  MARR
Minimum Attractive Rate of Return  MARR  represents the required or minimum acceptable Internal Rate of Return for a project investment.
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Economics
Engineering economics  cash flow diagrams, present value, discount rates, internal rates of return  IRR, income taxes, inflation.
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