Internal Rate of Return
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Energy
A widely used rate of return for performing economic analysis. This method solves for the interest rate that equates the equivalent worth of an alternative's cash receipts or savings to the equivalent worth of cash expenditures, including investments. The resultant interest rate is termed the internal rate of return (IRR).
- US DOE Office of Energy Efficiency & Renewable Energy — Glossary of Energy-Related Terms retrieved 2014-05-26