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dc.contributor.authorBornholt, Grahamen_US
dc.date.accessioned2017-05-29T12:32:01Z
dc.date.available2017-05-29T12:32:01Z
dc.date.issued2016en_US
dc.identifier.issn0001-3072en_US
dc.identifier.doi10.1111/abac.12093en_US
dc.identifier.urihttp://hdl.handle.net/10072/336700
dc.description.abstractHow to measure a project's implied rate of return has long been an unresolved problem, except for some special cases. This paper derives return on present cost (ROPC) as the correct measure of an investment project's implied rate of return. The IRR is a biased measure except for projects classified as simple projects, and this bias is likely to be substantial in many real-world applications. Thus while net present values should be used to determine whether to accept/reject projects, I recommend that analysts use ROPC in place of the IRR as a measure of a project's true rate of return.en_US
dc.description.peerreviewedYesen_US
dc.languageEnglishen_US
dc.publisherWiley-Blackwell Publishingen_US
dc.relation.ispartofpagefrom1en_US
dc.relation.ispartofpageto14en_US
dc.relation.ispartofjournalAbacusen_US
dc.subject.fieldofresearchInvestment and Risk Managementen_US
dc.subject.fieldofresearchcode150205en_US
dc.titleWhat is an Investment Project's Implied Rate of Return?en_US
dc.typeJournal articleen_US
dc.type.descriptionC1 - Peer Reviewed (HERDC)en_US
dc.type.codeC - Journal Articlesen_US
gro.facultyGriffith Business School, Department of Accounting, Finance and Economicsen_US
gro.hasfulltextNo Full Text


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