IRR
Abbreviation with 2 meanings
| Stands for | Internal rate of return |
|---|---|
| Meanings | 2 |
| Categories | Business & Finance, Military |
IRR has two meanings. It stands for Internal rate of return (finance) or Individual Ready Reserve (military term).
Meanings of IRR at a glance
| # | IRR stands for | Context |
|---|---|---|
| 1 | Internal rate of return | Business & Finance › Finance |
| 2 | Individual Ready Reserve | Military › Military Term |
1. Internal rate of return
Business & Finance · Finance Abbreviations
Discount rate at which the net present value of a series of cash flows equals zero, representing the annualized return an investment is expected to generate. Projects or funds are compared with a hurdle rate or cost of capital, and an IRR above it suggests value creation.
Example: The fund targets a 20 percent net IRR over a five-year hold.
IRR is the headline return measure in private equity and real estate. It can mislead when cash-flow signs change more than once, producing multiple IRRs, and it implicitly assumes interim cash is reinvested at the IRR itself, which MIRR corrects. Because early distributions boost IRR, investors also look at money multiples such as MOIC.
2. Individual Ready Reserve
Military · Military Term Abbreviations
Category of the Ready Reserve made up of trained individuals, mostly former active-duty members finishing their eight-year service obligation, who do not drill or get paid but can be involuntarily recalled in a national emergency.
Example: Thousands of IRR soldiers were recalled during the Iraq War to fill deploying units.
Members in the IRR must keep their contact information current and may be required to attend occasional muster events. Most people leave the IRR automatically when their obligation ends. It differs from the Selected Reserve, whose members drill regularly.
Related abbreviations
More finance abbreviations
- IB – Investment banking
- IBD – Investment banking division
- ICR – Interest coverage ratio
- IOI – Indication of interest
- LBO – Leveraged buyout
- LOI – Letter of intent
- LP – Limited partner
- LTM – Last twelve months
See all 88 finance abbreviations →
More military term abbreviations
- IG – Inspector General
- IMINT – Imagery intelligence
- IO – Information operations
- IPB – Intelligence preparation of the battlefield
- ISR – Intelligence, surveillance and reconnaissance
- JAG – Judge Advocate General
- JTAC – Joint terminal attack controller
- JWICS – Joint Worldwide Intelligence Communications System