Abstract

One of the most attractive indexes to select the best investment decision is internal rate of return (IRR) measure, but it has some significant faults both in practice and theoretically. Multiple attempts have been made to resolve the IRR challenges, but none of them are perfect. This article presents the Modified Simple Average Internal Rate of Return criterion as a profitability index for calculating a unique rate of return for all various types of cash flow streams so that obtained results are consistent with the net present value method in accept/reject decisions. The presented method is simple to compute and is capable of resolving all known IRR defects including when the resulting rate is greater than −1.

摘要

选择最佳投资决策的最有吸引力的指标之一是内部收益率（IRR）测度，但它在实践和理论上都存在一些重大缺陷。已经进行了多次尝试来解决 IRR 挑战，但没有一个是完美的。本文提出了修正的简单平均内部收益率标准作为计算所有各种类型现金流的唯一收益率的盈利能力指标，以便获得的结果与接受/拒绝决策中的净现值法一致。所提出的方法计算简单，并且能够解决所有已知的 IRR 缺陷，包括当结果速率大于 -1 时。