rate of return

rate of return. The annual income from an investment, expressed as a percentage of the investment. See RETURN(5).

fair rate of return. The amount of profit that a public utility is permitted to earn, as determined by a public utility commission. [Cases: Public Utilities 129. C.J.S. Public Utilities §§ 35, 38–41, 57.]

internal rate of return. Accounting. A discounted-cash-flow method of evaluating a long-term project, used to determine the actual return on an investment. — Abbr. IRR.


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