Analysis of the Misunderstanding in Investment Project Economic Appraisal Theory

摘要：

The In investment project economic appraisal theory, the internal rate of return (IRR) is often used as the project marginal revenue to ascertain project optimal scale and gain the minimum attractive rate of return（MARR）. This paper proves that only the net present value ratio (NPVR) and the net investprofit rate (N/K) , but not the internal rate of return(IRR), can accord with the meaning of marginal revenue from the theoretical and practical point of view. Which is also the reason that IRR ranking method can’t guarantee the selection result optimal when capital rationing doesn’t divide up the project. That is, except for NPVR and N/K, all the other indicators ranking methods are lack of theoretical basis, and only can be used as approximate methods in practical application.

关键词： Marginal Revenue Internal Rateof Return(IRR) Net Present Value Ratio(NPVR) netinvest-profitrate(N/K) Capital Rationing

作者: Liu Xiaoke

作者单位: School of Management and Economics Tianjin University Tianjin, P.R.China

会议类型: 国际会议

会议名称: 2011 International Conference on Business Management and Electronic Information(2011商业管理与电子信息国际学术会议 BMEI2011)

会议地点: 广州

会议语种:英文

页码: 1-3

在线出版日期: 2011-05-13（万方平台首次上网日期，不代表论文的发表时间）