Economics, Econometrics and Finance
3 years ago

New method fixes flaws in investment calculations, revolutionizing financial decision-making!

The Engineering Economist
Technical note: Modified simple average internal rate of return
Behnam Babaei S. A., Abdollah Jassbi

Paper Summary

Related papers

Economics, Econometrics and Finance
a year ago

New method reveals true investment portfolio performance for insurance companies!

Insurance Dynamics
2 views
Economics, Econometrics and Finance
a year ago

Unlocking the Secrets of Investment Returns: Maximizing Profits and Minimizing Risks

Real Options
2 views
Economics, Econometrics and Finance
2 years ago

Investments with high internal rate of return lead to profitable decisions.

Real Options
2 views

A new method called Modified Simple Average Internal Rate of Return has been developed to fix problems with the traditional internal rate of return (IRR) measure used in investment decisions. This new method calculates a single rate of return for different types of cash flow streams, making it easier to decide whether to accept or reject an investment. The Modified Simple Average Internal Rate of Return is simple to use and can handle all known issues with IRR, even when the resulting rate is greater than -1.