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
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