The Net Internal Rate Of Return - Net IRR

AAA

DEFINITION of 'The Net Internal Rate Of Return - Net IRR '

A measure of a portfolio or fund's performance that is equal to the internal rate of return (IRR) after management fees and carried interest have been accounted for. It is a capital budgeting and portfolio management term.

INVESTOPEDIA EXPLAINS 'The Net Internal Rate Of Return - Net IRR '

The IRR is a discount rate where the present value of future cash flows of an investment is equal to the cost of the investment. The net IRR is a modified IRR value that has taken into consideration management fees and any carried interest.

RELATED TERMS
  1. Cost Of Capital

    The required return necessary to make a capital budgeting project, ...
  2. Pooled Internal Rate Of Return ...

    A method of calculating the overall internal rate of return (IRR) ...
  3. Accounting

    The systematic and comprehensive recording of financial transactions ...
  4. Revenue

    The amount of money that a company actually receives during a ...
  5. Internal Rate Of Return - IRR

    The discount rate often used in capital budgeting that makes ...
  6. Expense

    1. The economic costs that a business incurs through its operations ...
RELATED FAQS
  1. What's the difference between net present value and internal rate of return? How ...

    Both of these measurements are primarily used in capital budgeting, the process by which companies determine whether a new ... Read Full Answer >>
  2. Which is a better measure for capital budgeting, IRR or NPV?

    In capital budgeting, there are a number of different approaches that can be used to evaluate any given project, and each ... Read Full Answer >>
  3. What is the difference between variance and standard deviation?

    Variance and standard deviation are both concepts that help statisticians and financial professionals understand differences ... Read Full Answer >>
  4. What variables are most important when making a prediction through sensitivity analysis?

    Sensitivity analysis is used in corporate finance and other fields as a means of making predictions based on changes in variables. ... Read Full Answer >>
  5. What types of stocks have a small difference between bid and ask prices?

    Generally, stocks that offer high liquidity have tight bid-ask spreads. Stocks that have a high volume and trade on a daily ... Read Full Answer >>
  6. What is the difference between a company's annual return and its annualized return?

    For most investors, determining whether an investment in a particular company or mutual fund is worthwhile comes down to ... Read Full Answer >>
Related Articles
  1. Fundamental Analysis

    The 4 R's Of Investing In Retail

    In retail, successfully managing return on investment (ROI) and other financial indicators is the key to a healthy business.
  2. Options & Futures

    How Risk Free Is The Risk-Free Rate Of Return?

    This rate is rarely questioned - unless the economy falls into disarray.
  3. Fundamental Analysis

    Internal Rate Of Return: An Inside Look

    Use this method to choose which project or investment is right for you.
  4. Fundamental Analysis

    Gauge Portfolio Performance By Measuring Returns

    Calculate returns frequently and accurately to ensure that you're meeting your investing goals.
  5. Fundamental Analysis

    Young Investors: Should You Care About Dividends?

    If you're a young investor, you may want to consider a non-traditional approach to investing.
  6. Investing Basics

    What is the Rule of 70?

    The rule of 70 is an easy way to calculate how many years it will take for an investment to double in size.
  7. Fundamental Analysis

    Explaining Variance

    Variance is a measurement of the spread between numbers in a data set.
  8. Professionals

    Due Diligence Tips for Investing in Alternatives

    Alternative investments can provide unique benefits to clients for whom they are suitable. But do your due diligence and beware of the risks.
  9. Investing

    Africa's Rapid Tech Advancement Drawing Investors

    The rapid adoption of technology, and the proliferation of startups, in Africa have created excellent investment opportunities.
  10. Economics

    Modified Internal Rate of Return (MIRR)

    Modified internal rate of return (MIRR) is a variant of the more traditional internal rate of return calculation.

You May Also Like

Hot Definitions
  1. Redemption

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
  2. Standard Error

    The standard deviation of the sampling distribution of a statistic. Standard error is a statistical term that measures the ...
  3. Capital Stock

    The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents ...
  4. Unearned Revenue

    When an individual or company receives money for a service or product that has yet to be fulfilled. Unearned revenue can ...
  5. Trailing Twelve Months - TTM

    The timeframe of the past 12 months used for reporting financial figures. A company's trailing 12 months is a representation ...
Trading Center