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...

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Main Author: A. Kuznetsov
Format: Article
Language:English
Published: Publishing House of the State University of Management 2018-05-01
Series:Вестник университета
Subjects:
Online Access:https://vestnik.guu.ru/jour/article/view/1039
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author A. Kuznetsov
author_facet A. Kuznetsov
author_sort A. Kuznetsov
collection DOAJ
description 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.
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institution Kabale University
issn 1816-4277
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publishDate 2018-05-01
publisher Publishing House of the State University of Management
record_format Article
series Вестник университета
spelling doaj-art-d82887b4b1ea482c88e6f1f70ec882c12025-02-04T08:27:55ZengPublishing House of the State University of ManagementВестник университета1816-42772686-84152018-05-010514014610.26425/1816-4277-2018-5-140-1461039CRITICAL ANALYSIS OF THE CONCEPT OF INTERNAL RATE OF RETURN OF INVESTMENTS PROJECTSA. Kuznetsov0Moscow State University of Civil EngineeringThe 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.https://vestnik.guu.ru/jour/article/view/1039investment projectinternal rate of returnirrevaluation effectivenessdiscount rateweighted average cost of capitalrelative yieldinvested capitalinvestor behavior
spellingShingle A. Kuznetsov
CRITICAL ANALYSIS OF THE CONCEPT OF INTERNAL RATE OF RETURN OF INVESTMENTS PROJECTS
Вестник университета
investment project
internal rate of return
irr
evaluation effectiveness
discount rate
weighted average cost of capital
relative yield
invested capital
investor behavior
title CRITICAL ANALYSIS OF THE CONCEPT OF INTERNAL RATE OF RETURN OF INVESTMENTS PROJECTS
title_full CRITICAL ANALYSIS OF THE CONCEPT OF INTERNAL RATE OF RETURN OF INVESTMENTS PROJECTS
title_fullStr CRITICAL ANALYSIS OF THE CONCEPT OF INTERNAL RATE OF RETURN OF INVESTMENTS PROJECTS
title_full_unstemmed CRITICAL ANALYSIS OF THE CONCEPT OF INTERNAL RATE OF RETURN OF INVESTMENTS PROJECTS
title_short CRITICAL ANALYSIS OF THE CONCEPT OF INTERNAL RATE OF RETURN OF INVESTMENTS PROJECTS
title_sort critical analysis of the concept of internal rate of return of investments projects
topic investment project
internal rate of return
irr
evaluation effectiveness
discount rate
weighted average cost of capital
relative yield
invested capital
investor behavior
url https://vestnik.guu.ru/jour/article/view/1039
work_keys_str_mv AT akuznetsov criticalanalysisoftheconceptofinternalrateofreturnofinvestmentsprojects