The internal rate of return problems and manners of solution
1996
Cristodoulou, A. (Aristotle University Thessaloniki (Greece))
The Internal Rate of Return (IRR) as an evaluation criterion of investment projects was used and still is being used widely. However, it presents three disadvantages: a) the disadvantage of reinvesting the intermediate revenue, b) the late costs and c) the existence of many roots during solving out the respective mathematical equation. Therefore, to avoid jumping into misleading results-conclusions it is advisable to use this criterion carefully and on the same time to proceed to the required interferences-corrections when it is considered necessary.
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