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Internal measure |
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Internal measureThe number of days that a firm can finance operations without additional cash income.Internal measure Similar MatchesInternal Revenue Service (IRS)Internal Revenue Service (IRS)The federal agency responsible for the collection of federal taxes, including personal and corporate income taxes, Social Security taxes, and excise and gift taxes. Internal rate of returnInternal rate of returnThe interest rate which, when used as the discount rate for a series of cash flows, gives a net present value of zero.To understand this, remember the fundamental concept that £1 received in ten years is not worth as much as £1 received now, because £1 received now can be invested for ten years and compound into a higher amount.So if you are a project financier, and you are considering the viability of a project that requires up front capital expenditure, which will be recouped by net cash inflows in years 3, 4 and 5, you have to discount the earnings in those later years to establish their net present value. The discount you apply is the crucial thing, but the IRR gives you a starting point -it is the discount rate at which the project will break even.If you apply a discount rate to future cashflows that is higher than the IRR, the project will make a loss in real terms. If you apply a discount that is lower than the IRR, the project will be profitable. Internal Revenue ServiceInternal Revenue ServiceThe US agency responsible for the collection of federal taxes which include personal and corporate income taxes, excise and gift taxes. Incremental internal rate of returnIncremental internal rate of returnInternal rate of return (I.R.R.) on the incremental investment from choosing a larger instead of a smaller project. Portfolio internal rate of returnPortfolio internal rate of returnThe rate of return computed by first determining the cash flows for all the bonds in the portfolio and then finding the interest rate that will make the present value of the cash flows equal to the market value of the portfolio. Further SuggestionsInternally efficient marketInternal finance Internal Revenue Service Restructuring and Reform Act of 1998 Internal economies of scale Internal growth rate Internalize Internal expansion Internal balance Internal Revenue Code |
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