Engineering Economics Revision Article Series
Internal rate of return (IRR) of an engineering decision can be compared with the minimum acceptable rate of return set by the organization.
IRR is calculated by equating the annual, or present, or future worth of cash flows to zero and solving for the interest rate that allows the equality
References
Engineering Economics, 4th Edition, James L. Riggs, David D. Bedworth, and Sabah U. Randhawa, McGraw Hill, New York, 1996
Online Resources
http://www.ie.bilkent.edu.tr/~ie342-3/Lecture%20No25.ppt
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Originally posted in
http://knol.google.com/k/narayana-rao/rate-of-return-calculations/2utb2lsm2k7a/ 252
Internal rate of return (IRR) of an engineering decision can be compared with the minimum acceptable rate of return set by the organization.
IRR is calculated by equating the annual, or present, or future worth of cash flows to zero and solving for the interest rate that allows the equality
References
Engineering Economics, 4th Edition, James L. Riggs, David D. Bedworth, and Sabah U. Randhawa, McGraw Hill, New York, 1996
Online Resources
http://www.ie.bilkent.edu.tr/~ie342-3/Lecture%20No25.ppt
_____________ _____________
_____________ _____________
_____________ _____________
Originally posted in
http://knol.google.com/k/narayana-rao/rate-of-return-calculations/2utb2lsm2k7a/ 252
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