Chapter 4. Operating IRR: In Search of a Fictional Rate

Alexandr Zhevnyak

from Socionet

Abstract: The concept of operating profitability of a loan / deposit, which coincides with the IRR value, is introduced and reflects the meaningful economic meaning of IRR as the ratio of the amount of discounted interest payments to the amount of discounted current loan indebtedness. That corresponds to the traditional understanding in economics for the performance indicators of as the relationship of the effect to the resources used to achieve it. Other interpretations of the IRR that follow from the above are also given. It is shown that in projects with a single simple or many repeated IRR this value expresses the profitableness of the borrowing project and the investment project for all non-negative values of the discount rate

References: Add references at CitEc
Citations:

Downloads: (external link)
https://socionet.ru/~yfexbkczcfv/files/Chapter4.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nos:bedcdu:nc04

Access Statistics for this chapter

More chapters in NEW CONCEPT OF RETURN ON BORROWED AND INVESTMENT PROJECTS from Socionet
Bibliographic data for series maintained by Александр Жевняк ( this e-mail address is bad, please contact ).