Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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A Study on the Real Rate of Return in Real Investment

실물 투자사업의 수익률에 관한 연구

  • Kim, Jin-Wook (Department of Industrial and Systems Engineering, Changwon National University) ;
  • Lee, Choon-Shik (Department of Industrial and Systems Engineering, Changwon National University) ;
  • Kim, Jie-Kwan (Department of Industrial and Systems Engineering, Changwon National University)
  • 김진욱 (창원대학교 산업시스템공학과) ;
  • 이춘식 (창원대학교 산업시스템공학과) ;
  • 김지관 (창원대학교 산업시스템공학과)
  • Published : 2009.12.31
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Abstract

When multiple rates of return occur, none of them is an accurate portrayal of project acceptability or profitability. For the simple investment situation, it was known that the IRR can serve as an appropriate index for either accepting or rejecting the investment. But, in this situation, we present that the IRR criterion is not same to DCF criterion. On the contrary we can easily show that the RRR criterion is completely consistent with the DCF criterion. Thus, the RRR is very well match for an accurate portrayal of project acceptability or profitability.

Keywords

References

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