Internal Rate of Return (IRR): A New Proposed Approach
| dc.contributor.author | Mujahed, Murad Mohammed | |
| dc.contributor.author | Elshareif, Elgilani Eltahir | |
| dc.date.accessioned | 2022-04-22T05:50:26Z | |
| dc.date.available | 2022-04-22T05:50:26Z | |
| dc.date.copyright | © 2017 | |
| dc.date.issued | 2017 | |
| dc.description | This conference paper is not available at CUD collection. The version of scholarly record of this paper is published in Leadership, Innovation and Entrepreneurship as Driving Forces of the Global Economy. Springer Proceedings in Business and Economics (2017), available online at: https://doi.org/10.1007/978-3-319-43434-6_68 | en_US |
| dc.description.abstract | This study tries to develop a new internal rate of return (IRR) approach assuming constant and positive cash flows. The traditional IRR method is implicitly based on trial and error that needs two initial guesses and slowly converges to the solution. The development so far was based on Newton–Raphson methods that reduce the two guesses to only one guess with quadratic convergence. However, this development has many limitations such as divergence at inflection points and pitfalls like division by zero. The progress of our study so far is to eliminate the initial guess with assumption of equal series of positive cash flows. Further, the expected finding of the new approach will assist practitioners and academics to compute the IRR accurately as the rate of return on the declining balance of the investment, analogous to the YTM on a premium bond and the contract rate on a fully amortized loan. © 2017, Springer International Publishing Switzerland. | en_US |
| dc.identifier.citation | Mujahed, M.M. & Elshareif, E.E. (2017). Internal Rate of Return (IRR): A New Proposed Approach. In R. Benlamri & M. Sparer (Eds.) Leadership, Innovation and Entrepreneurship as Driving Forces of the Global Economy. Springer Proceedings in Business and Economics (pp. 761 – 767). Springer, Cham. https://doi.org/10.1007/978-3-319-43434-6_68 | en_US |
| dc.identifier.isbn | 978-331943433-9 | |
| dc.identifier.issn | 21987246 | |
| dc.identifier.uri | https://doi.org/10.1007/978-3-319-43434-6_68 | |
| dc.identifier.uri | http://hdl.handle.net/20.500.12519/544 | |
| dc.language.iso | en | en_US |
| dc.publisher | Springer Science and Business Media B.V. | en_US |
| dc.relation | Authors Affiliations : Mujahed, M.M., Canadian University of Dubai, 117781, Dubai, United Arab Emirates; Elshareif, E.E., Canadian University of Dubai, 117781, Dubai, United Arab Emirates | |
| dc.relation.ispartofseries | Leadership, Innovation and Entrepreneurship as Driving Forces of the Global Economy. Springer Proceedings in Business and Economics; | |
| dc.rights | License to reuse the abstract has been secured from Springer Nature and Copyright Clearance Center. | |
| dc.rights.holder | Copyright : © 2017, Springer International Publishing Switzerland. | |
| dc.rights.license | License Number : 5292360179993 License date : Apr 19, 2022 | |
| dc.rights.uri | https://s100.copyright.com/CustomerAdmin/PLF.jsp?ref=bf13f3e2-5142-46df-af60-cb0f0a7f2a67 | |
| dc.subject | Bisection | en_US |
| dc.subject | IRR | en_US |
| dc.subject | Newton–Raphson | en_US |
| dc.title | Internal Rate of Return (IRR): A New Proposed Approach | en_US |
| dc.type | Conference Paper | en_US |