haku: @indexterm Rate of return / yhteensä: 621
viite: 89 / 621
| Tekijä: | Anderson, G. Barber, J. |
| Otsikko: | Project holding-period rate of return and the MIRR |
| Lehti: | Journal of Business Finance and Accounting
1994 : JUN, VOL. 21:4, p. 613-618 |
| Asiasana: | RATE OF RETURN CASH FLOW CAPITAL COSTS |
| Kieli: | eng |
| Tiivistelmä: | In this paper the authors examine the relationship between the Modified Internal Rate of Return (MIRR) and a project's expected holding-period rate of return assuming that cash flows are reinvested at the cost of capital. When cash flows are uncertain, the MIRR overstates expected holding-period rate of return. The relationship between the MIRR and a project's expected holding-period rate of return is shown to be a simple function of conventional project statistics like the coefficient of variation of the present value of random cash flow, the profitability index, the cost of capital, and the project's life. |
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