Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/60628
Title: Technical note : the variable financial indicator IRR and the constant economic indicator NPV
Authors: Tang, SL
Tang, H
Issue Date: 2003
Publisher: Taylor & Francis
Source: The engineering economist, 2003, v. 48, no. 1, p. 69-78 How to cite?
Journal: The engineering economist 
Abstract: The IRR (internal rate of return) and the NPV (net present value) are the two most common and important indicators in investment decisions. These two indicators, however, have intrinsic differences between one another. The IRR is a financial indicator and the NPV an economic indicator of a capital investment. The former gives the private investor's point of view and the latter the society's point of view. The value of ERR varies with the change of Financial arrangement of an investment. The NPV, however, does not but remains constant no matter how the financial arrangement changes. This paper uses an illustrative example to show their intrinsic differences and then describes a mathematical proof to substantiate the different natures of IRR and NPV.
URI: http://hdl.handle.net/10397/60628
ISSN: 0013-791X (print)
1547-2701 (online)
DOI: 10.1080/00137910308965052
Appears in Collections:Journal/Magazine Article

Access
View full-text via PolyU eLinks SFX Query
Show full item record

SCOPUSTM   
Citations

11
Citations as of Sep 16, 2017

Page view(s)

23
Last Week
3
Last month
Checked on Sep 17, 2017

Google ScholarTM

Check

Altmetric



Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.