Various Methods Aim to Solve the Limitation of IRR
Authors
Yushan Chen1, *,a, †, Zhanxu Dong2, *, b, †, Yuxuan Wu3, *, c, †, Weihui Zhang4, *, d, †
1Nanchang No.2 High School, 330038, Nanchang, China
2Elite Academic School, M2J 4G8, Toronto, Canada
3Suzhou International Academy, BFSU, 215299, Suzhou, China
4Cardiff Sixth Form College, CF24 0AA, Cardiff, UK
†
These authors contributed equally.
*Corresponding author. Email: abiula0916@outlook.com
Corresponding Authors
Yushan Chen, Zhanxu Dong, Yuxuan Wu, Weihui Zhang
Available Online 26 March 2022.
- DOI
- 10.2991/aebmr.k.220307.198How to use a DOI?
- Keywords
- internal rate of return; net present value; modified internal rate of return
- Abstract
Both NPV and IRR are metrics that are used to calculate the profit and help investors to make decisions about their investments. While these methods help investors to identify the most profitable project, we cannot ignore some limitations of using them as well. Through analysing the strengths and limitations of these two methods, the modified internal rate of return and financial management rate of return is considered as the complement of IRR. This paper suggests that it is unrealistic to have a perfect metric without any limitation, but several methods can be combined and applied into practice.
- Copyright
- © 2022 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Yushan Chen AU - Zhanxu Dong AU - Yuxuan Wu AU - Weihui Zhang PY - 2022 DA - 2022/03/26 TI - Various Methods Aim to Solve the Limitation of IRR BT - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022) PB - Atlantis Press SP - 1196 EP - 1200 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.220307.198 DO - 10.2991/aebmr.k.220307.198 ID - Chen2022 ER -