👉 Aggregate IOR, or Internal Rate of Return, is a financial metric that represents the expected annualized rate of return on an investment over its lifetime, taking into account the time value of money and the cash flows generated by the investment. It is calculated by discounting all future cash inflows (both positive and negative) back to their present value using the investor's cost of capital or required rate of return, until the net present value (NPV) of all cash flows equals zero. The resulting rate provides a comprehensive measure of an investment's profitability, allowing investors to compare different opportunities on an equal footing by considering their total expected return over time.
