Ranking and Optimal Selection of Investments with Internal Rate of Return and Benefit-Cost Ratio : A Revision

The purpose of this paper is to present a procedure to include the implicit assumptions of Net Present Value NPV in the Internal Rate of Return, IRR, and the profitability index (benefit-cost ratio B/CR). The resulting indicators are the weighted IRR (WIRR) and the expanded B/CR (EB/CR). These two desirability measures have the property to coincide with the NPV ranking for investment analysis and hence, will maximize value. Examples are presented

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Year of publication:	2013
Authors:	Velez-Pareja, Ignacio
Publisher:	[2013]: [S.l.] : SSRN
Subject:	Kosten-Nutzen-Analyse \| Cost-benefit analysis \| Betriebliche Investitionstheorie \| Corporate investment theory

Extent:	1 Online-Ressource (24 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: Contaduría y Administración, No. 236, pp. 29-51, January-April 2012 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 16, 2010 erstellt
Classification:	D92 - Intertemporal Firm Choice and Growth, Investment, or Financing ; E22 - Capital; Investment (including Inventories); Capacity ; E31 - Price Level; Inflation; Deflation ; G31 - Capital Budgeting; Investment Policy
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013094049