Open AccessDie interne rendement en meervoudige opbrengste
Author(s) -
W. G. Klerck
Publication year - 1983
Publication title -
south african journal of business management
Language(s) - English
Resource type - Journals
eISSN - 2078-5976
pISSN - 2078-5585
DOI - 10.4102/sajbm.v14i3.1151
Subject(s) - internal rate of return , modified internal rate of return , capital budgeting , rate of return , computer science , operations research , mathematics , actuarial science , econometrics , economics , finance , microeconomics , return on investment , investment performance , production (economics) , project appraisal
The internal rate of return and multiple solutions It is often stated that one of the problems that occurs when using the internal rate of return in capital budgeting is that the method can generate multiple rates or solutions. In this article the problem of multiple rates is analysed, using the approach adopted by J.C.T. Mao in his book Quantitative Analysis of Financial Decisions. In order to implement Mao's approach a computer program was written in Apple Basic. The use of the program is illustrated with a few examples.