CRITICAL ANALYSIS OF THE CONCEPT OF INTERNAL RATE OF RETURN OF INVESTMENTS PROJECTS

CRITICAL ANALYSIS OF THE CONCEPT OF INTERNAL RATE OF RETURN OF INVESTMENTS PROJECTS

The article deals with to the critical analysis of the internal rate of return, which represents one of the traditional most frequently used indicators of financial effectiveness of investment projects, allowing investors to sense relative yield from investing in a project. Within the analysis the a...

Full description

Bibliographic Details
Main Author: A. Kuznetsov
Format: Article
Language:Russian
Published: Publishing House of the State University of Management 2018-05-01
Series:Вестник университета
Subjects:
investment project
internal rate of return
irr
evaluation effectiveness
discount rate
weighted average cost of capital
relative yield
invested capital
investor behavior
Online Access:https://vestnik.guu.ru/jour/article/view/1039
Description
Summary:The article deals with to the critical analysis of the internal rate of return, which represents one of the traditional most frequently used indicators of financial effectiveness of investment projects, allowing investors to sense relative yield from investing in a project. Within the analysis the author identifies deficiencies of applying the internal rate of return and offers alternative means of practical evaluation of relative yield from investing in a project based on modelling of an investor’s behavior related to expected schedule of return invested capital.
ISSN:1816-4277
2686-8415

Similar Items