A New Method to Calculate Internal Rate of Return
A number of methods have been developed to choose the best capital investment projects such as net present value, internal rate of return and etc. Internal rate of return method is probably the most popular method among managers and investors. But despite the popularity there are serious drawbacks a...
| Main Authors: | , , |
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| Format: | Article |
| Language: | fas |
| Published: |
University of Isfahan
2015-09-01
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| Series: | مدیریت تولید و عملیات |
| Subjects: | |
| Online Access: | http://uijs.ui.ac.ir/jpom/browse.php?a_code=A-10-335-1&slc_lang=en&sid=1 |
| Summary: | A number of methods have been developed to choose the best capital investment projects such as net present value, internal rate of return and etc. Internal rate of return method is probably the most popular method among managers and investors. But despite the popularity there are serious drawbacks and limitations in this method. After decades of efforts made by economists and experts to improve the method and its shortcomings, Magni in 2010 has revealed a new approach that can solves the most of internal rate of return method problems. This paper present a new method which is originated from Magni’s approach but has much more simple calculations and can resolve all the drawbacks of internal rate of return method. |
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| ISSN: | 2251-6409 2423-6950 |