Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

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
https://doi.org/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.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.220307.198How to use a DOI?
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  - https://doi.org/10.2991/aebmr.k.220307.198
ID  - Chen2022
ER  -