The unique discount rate that equates to the present value of cash flows (i.e., lease payments, purchase option) to the present value of the cash outflows (equipment or investment cost). The IRR is the most common method used to compute yields.
The unique discount rate that equates to the present value of cash flows (i.e., lease payments, purchase option) to the present value of the cash outflows (equipment or investment cost). The IRR is the most common method used to compute yields.