internal rate of return

简明释义

内部报酬率

英英释义

例句

1.A higher internal rate of return 内部收益率 indicates a more profitable investment opportunity.

较高的内部收益率 internal rate of return 表明这是一个更有利可图的投资机会。

2.Investors often compare the internal rate of return 内部收益率 of different projects to determine which one offers better returns.

投资者通常比较不同项目的内部收益率 internal rate of return 以确定哪个项目提供更好的回报。

3.The project's internal rate of return 内部收益率 is estimated to be 15%, which makes it a viable investment option.

该项目的内部收益率 internal rate of return 估计为15%，这使其成为一个可行的投资选择。

4.When evaluating a new business venture, the internal rate of return 内部收益率 is a crucial metric to consider.

在评估一个新的商业风险时，内部收益率 internal rate of return 是一个关键指标。

5.To calculate the internal rate of return 内部收益率, you need to know the expected cash flows and the initial investment.

要计算内部收益率 internal rate of return，您需要知道预期现金流和初始投资。

作文

The concept of internal rate of return is a crucial financial metric used to evaluate the profitability of investments. Essentially, the internal rate of return (IRR) represents the discount rate at which the net present value (NPV) of all cash flows from a particular investment equals zero. In simpler terms, it is the rate at which an investor can expect to earn a return on their investment over time. Understanding the internal rate of return is vital for both individual and corporate investors as it helps in making informed decisions about where to allocate resources.To grasp the significance of the internal rate of return, consider a straightforward example. Suppose you invest $10,000 in a project that is expected to generate cash inflows of $3,000 per year for four years. To determine the IRR, one would calculate the rate that makes the present value of these cash inflows equal to the initial investment. If the calculated IRR is higher than your required rate of return or the cost of capital, it indicates that the investment is worthwhile.One of the primary advantages of using the internal rate of return is that it provides a single number that summarizes the potential return of an investment, making it easier to compare different opportunities. For instance, if you are considering two projects, one with an IRR of 15% and another with an IRR of 10%, the first project would generally be more attractive. This comparative aspect allows investors to prioritize projects that will yield the highest returns relative to their risks.However, while the internal rate of return is a powerful tool, it does come with some limitations. One significant drawback is that it assumes that all cash inflows generated by the investment are reinvested at the same rate as the IRR. This may not always be realistic, especially in volatile markets where reinvestment opportunities can vary significantly. Additionally, the IRR can sometimes provide misleading information when dealing with non-conventional cash flows, such as those that change direction multiple times over the investment period.Furthermore, the internal rate of return does not account for the scale of the investment. For instance, a project with a high IRR but a small dollar amount may not be as beneficial as a larger project with a slightly lower IRR. Therefore, it is essential to consider the size of the investment alongside the IRR when making decisions.In conclusion, the internal rate of return is a fundamental concept in finance that helps investors assess the viability of an investment. It serves as a useful benchmark for comparing different investment opportunities. However, it is essential to recognize its limitations and to use it in conjunction with other metrics and qualitative factors to make well-rounded investment decisions. By understanding the internal rate of return, investors can better navigate the complex world of finance and enhance their chances of achieving favorable outcomes in their investment endeavors.

内部收益率是评估投资盈利能力的重要财务指标。基本上，内部收益率（IRR）代表使特定投资的所有现金流的净现值（NPV）等于零的折现率。简单来说，它是投资者期望在一段时间内获得的投资回报率。理解内部收益率对个人和企业投资者至关重要，因为它有助于做出关于资源分配的明智决策。为了理解内部收益率的重要性，考虑一个简单的例子。假设你在一个项目中投资了10,000美元，预计该项目每年将产生3,000美元的现金流入，持续四年。要确定IRR，您需要计算使这些现金流入的现值等于初始投资的利率。如果计算出的IRR高于您的要求回报率或资本成本，这表示该项投资是值得的。使用内部收益率的主要优点之一是它提供了一个总结投资潜在回报的单一数字，使得比较不同的机会变得更容易。例如，如果您正在考虑两个项目，一个的IRR为15%，另一个的IRR为10%，那么第一个项目通常会更具吸引力。这种比较方面使投资者能够优先考虑那些相对于风险能够产生最高回报的项目。然而，虽然内部收益率是一个强大的工具，但它也有一些局限性。一个显著的缺点是它假设投资产生的所有现金流入都以与IRR相同的利率再投资。这可能并不总是现实的，尤其是在市场波动较大的情况下，再投资机会可能会大相径庭。此外，当处理非常规现金流时，例如在投资期间现金流方向多次变化时，IRR有时会提供误导性的信息。此外，内部收益率不考虑投资的规模。例如，一个具有高IRR但金额较小的项目可能没有一个规模较大的、IRR略低的项目那么有利。因此，在做出决策时，必须考虑投资的规模以及IRR。总之，内部收益率是金融中的一个基本概念，帮助投资者评估投资的可行性。它作为比较不同投资机会的有用基准。然而，重要的是要认识到它的局限性，并将其与其他指标和定性因素结合使用，以做出全面的投资决策。通过理解内部收益率，投资者可以更好地驾驭复杂的金融世界，提高在投资事业中获得良好结果的机会。