Dispelling the Myth Around the Financial Appraisal of Capital Projects
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62690094%3A18450%2F18%3A50015409" target="_blank" >RIV/62690094:18450/18:50015409 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.1109/EMR.2018.2810127" target="_blank" >http://dx.doi.org/10.1109/EMR.2018.2810127</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1109/EMR.2018.2810127" target="_blank" >10.1109/EMR.2018.2810127</a>
Alternative languages
Result language
angličtina
Original language name
Dispelling the Myth Around the Financial Appraisal of Capital Projects
Original language description
The investment appraisal of capital projects is an emotive subject. The main focus of the disagreement between academics and practitioners, with respect to the financial appraisal of capital projects, appears to be in the area of the two discount cashflow models - the net present value (NPV) and the internal rate of return (IRR); the question being, which one will give, the so-called, 'right' answer with respect to the accept/reject decision? We explore the myth between these two models and introduce the 'marginal growth rate' (MGR) as the missing link. We also argue that both the IRR and modified IRR should be ignored and that managers should use the NPV and MGR.
Czech name
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Czech description
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Classification
Type
J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2018
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
IEEE engineering management review
ISSN
0360-8581
e-ISSN
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Volume of the periodical
46
Issue of the periodical within the volume
1
Country of publishing house
US - UNITED STATES
Number of pages
5
Pages from-to
47-51
UT code for WoS article
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EID of the result in the Scopus database
2-s2.0-85045551659