Literaturnachweis - Detailanzeige
Autor/in | Johnstone, David |
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Titel | What Does an IRR (or Two) Mean? |
Quelle | In: Journal of Economic Education, 39 (2008) 1, S.78-87 (10 Seiten)Infoseite zur Zeitschrift
PDF als Volltext |
Sprache | englisch |
Dokumenttyp | gedruckt; online; Zeitschriftenaufsatz |
ISSN | 0022-0485 |
Schlagwörter | Investment; Computation; Credit (Finance); Economics Education; Decision Making; Mathematical Concepts |
Abstract | Defined mathematically, the internal rate of return (IRR) of a cash-flow stream is the discount rate at which its net present value is 0. What is the significance or meaning of such a measure? Using simple example problems and illustrative calculations, the author explains a technically correct but, at the same time, intuitively meaningful interpretation of IRR. The mathematical insights gained include a clear understanding of how multiple IRRs occur and of how investment decisions based on net present value are reconcilable with two or more observed IRRs. (Contains 5 tables and 3 figures.) (Author). |
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Erfasst von | ERIC (Education Resources Information Center), Washington, DC |
Update | 2017/4/10 |