Glossary Terms

Internal Rate of Return (IRR)

A financial calculation that compares the present value of a project’s expected revenues with the present value of its expected costs. The IRR calculation is used to determine the discount rate at which the two values are equal. By doing this calculation, investors are able to see the project’s expected rate of return. The IRR will be a number where revenue exceeds the costs of financing the project. This means a surplus will remain after paying for the capital, and the investors will benefit from the investment.

Hertz (Hz)

A standard unit of measurement: its units are 1/seconds. Typically used in the electricity industry to describe how many times an electrical signal repeats itself over the course of one second. Example: The electricity in the United States has a frequency of 60 Hz. This means that the signal of the U.S Electric System repeats itself 60 times per second.

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