Abbreviation for Internal Rate of Return, a financial metric used to evaluate the profitability of investments.
Business and finance acronym from the mid-20th century, derived from the full term 'Internal Rate of Return.' The concept evolved from mathematical discounting principles developed in economics and became standard in corporate finance and investment analysis.
IRR exemplifies how complex mathematical concepts become everyday business tools, transforming abstract time-value-of-money calculations into practical decision-making metrics. It's remarkable how this single percentage can determine whether billion-dollar projects move forward or get scrapped.
Complete word intelligence in one call. Free tier — 50 lookups/day.