What question did this study set out to answer?

The research examines the limitations of the internal rate of return (IRR) model in multi-asset contexts.

Present Value Models and the Multi-Asset Problem.

View Full Paper

Ask AI

Bookmark

Authors

This article analyzes the limitations of the IRR model in multi-asset situations, suggesting implications for its application.

The research examines the limitations of the internal rate of return (IRR) model in multi-asset contexts.
Analyzes the relationship between the IRR and estimation theory.
Discusses cash flow assignments to joint assets in multi-asset situations.
Evaluates the amortization schemes using the IRR model.
Identifies that traditional IRR applications fail in multi-asset contexts.
Demonstrates that IRR is inadequately justified for separable multi-asset applications.
Concludes that IRR should be viewed as a firm model rather than a single-asset model.

Brief et al. (1973) studied this question.

View Full Paper

Ask AI

Bookmark