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Average Internal Rate of Return
2020We present the Average Internal Rate of Return (AIRR), which expresses the ratio of total income to total capital employed or, equivalently, the capital-weighted mean of the holding period rates. In particular, we show how to draw and use the (levered and unlevered) average ROI and the average ROE from the pro forma financial statements, how to assess ...
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The internal rate of return of fuzzy cash flow
Rivista di Matematica per le Scienze Economiche e Sociali, 1991Summary: An internal rate of return (IRR) of an investment or financing project with cash flow \((a_ 0,a_ 1,a_ 2, \dots,a_ n)\) is usually defined as a rate of interest such that \(a_ 0+a_ 1(1+r)^{- 1}+\cdots+a_ n(1+r)^{-n}=0\). If the cash flow has one sign change then the previous equation has a unique solution \(r>-1\).
Biacino, L., Simonelli, M. R.
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Internal Rate Of Return Revisited
SSRN Electronic Journal, 1997Discounted Cash Flow (DCF) includes the present value (PV) (or net present value (NPV)) and the internal rate of return (IRR) methods of analyzing cash flows. DCF provides insight into financial management not possible using other techniques. The NPV of the time-phased costs over the economic life of an investment project is the best single-number ...
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MULTIPLE INTERNAL RATES OF RETURN: A REVISITATION
Review of Financial Economics, 1993This paper investigates the utility of certain existing rules for the identification of nonâimaginary internal rates of return in the capital budgeting process. More specifically, the paper demonstrates the applicability of Descartes' Rule of Signs, Budan's Theorem, and Sturm's Theorem from the theory of equations and rules developed in the business ...
James R. Sisson, James F. Nielsen
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Present values and internal rates of return
Journal of Economic Theory, 1980Abstract This paper resolves the question of finding the complete set of conditions under which the present value of a return stream decreases as interest rates rise. Previous work has shown that if a return stream can be costlessly abandoned, or truncated, at any date prior to its natural termination, then its value is monotone.
Ross, Stephen A. +2 more
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Internal Rate of Return: Friend or Foe?
SPE Hydrocarbon Economics and Evaluation Symposium, 1985Abstract Results of a recent survey of over 100 exploration, production, and transmission companies operating in the Rocky Mountain Region indicate that the internal rate of return (IRR) is extremely popular as an economic evaluation criterion.
R.E. Terry, M.P. Ehman
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Relevant and Irrelevant Internal Rates of Return
The Engineering Economist, 1986ABSTRACT One problem with internal race of return is the possibility that given cash flows may result in more than one internal rate of return. The purpose of this paper is to develop a method for determining relevance of an internal rate of return. An Internal rate of return is considered relevant if its derivatives with respect to each of the cash ...
Roger E. Cannaday +2 more
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ON DERIVING THE INTERNAL RATE OF RETURN FROM THE ACCOUNTANT'S RATE OF RETURN
Journal of Business Finance & Accounting, 1976L.A. Gordon (J.B.F.A. Vol. 1 No, 3) claims to have derived a method for approximating the IRR using the ARR. This paper demonstrates that the key relationship in Gordon's paper is only valid if the IRR is already known and used to calculate economic depreciation.
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The Composite Internal Rate of Return
Forest Science, 1970Abstract An algorithm for computing a composite internal rate of return is presented. Composite internal rate of return has the advantage, over the internal rate of return measure as it is commonly computed, of providing a unique solution, and one which is consistent with the net present worth decision rule. Forest Sci. 16:276-279.
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Fixed capital and internal rate of return
Journal of Mathematical Economics, 1999zbMATH Open Web Interface contents unavailable due to conflicting licenses.
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