TY - JOUR

T1 - Multiple internal rate of return revisited

T2 - Frequency of occurrences

AU - Ng, Ean Harn

AU - Beruvides, Mario G.

N1 - Publisher Copyright:
© 2015 Institute of Industrial Engineers.

PY - 2015/1/2

Y1 - 2015/1/2

N2 - Research in multiple internal rate of return (MROR) has mainly focused on three areas: uniqueness, conditions where MROR occur, and solutions to MROR. In an attempt to solve for MROR, researchers have assumed that the occurrence of MROR is prevalent and thus a solution is direly needed. This article examines the probability that positive MROR would occur when variation is incorporated into the cash flow and the probability of getting positive MROR when multiple sign-change cash flow is generated. Results show that the probability of positive MROR occurring in multiple sign-change cash flows is relatively low and potentially a rare event.

AB - Research in multiple internal rate of return (MROR) has mainly focused on three areas: uniqueness, conditions where MROR occur, and solutions to MROR. In an attempt to solve for MROR, researchers have assumed that the occurrence of MROR is prevalent and thus a solution is direly needed. This article examines the probability that positive MROR would occur when variation is incorporated into the cash flow and the probability of getting positive MROR when multiple sign-change cash flow is generated. Results show that the probability of positive MROR occurring in multiple sign-change cash flows is relatively low and potentially a rare event.

UR - http://www.scopus.com/inward/record.url?scp=84922002005&partnerID=8YFLogxK

U2 - 10.1080/0013791X.2013.865149

DO - 10.1080/0013791X.2013.865149

M3 - Article

AN - SCOPUS:84922002005

SN - 0013-791X

VL - 60

SP - 75

EP - 87

JO - Engineering Economist

JF - Engineering Economist

IS - 1

ER -