In a new weekly feature, we will share a question that our firm receives during the week that may be of interest to many others just like them.  This week we tackle “what is the actual definition of internal rate of return?”  According to Wikipedia.org (and countless other highly visited websites), the internal rate of return on an investment or project is the rate of return that makes the net present value of all cash flows (both positive and negative) from a particular investment equal to zero. In more specific terms, the IRR of an investment is the discount rate at which the net present value of costs (negative cash flows) of the investment equals the net present value of the benefits (positive cash flows) of the investment.

Please check back next week for our next installment of “Question of the Week”.  As always, contact us with any assistance you may need with your structured settlement – past, current, or future.   We will be glad to help.