Abstract
Balyeat, et. al. (2013, this journal) suggest that IRR does not have a clear economic interpretation and that MIRR highlights the reinvestment assumptions of NPV and IRR thus increasing its value as a teaching tool. This comment addresses misconceptions found in the work of Balyeat, et. al. In particular, it reiterates the economic interpretation of IRR and reexamines the alleged reinvestment rate assumptions.
| Original language | American English |
|---|---|
| Journal | Journal of Economics and Finance Education |
| Volume | 12 |
| State | Published - Jan 1 2013 |
Disciplines
- Business Administration, Management, and Operations
- Economics
- Finance
- Finance and Financial Management
Keywords
- Economics
- Finance
- IRR
- Investment performance
- MIRR