engleski

Possibility of usage the financial functions with the computer assistance in the business plan

The internal rate of return method has three basic flaws limiting its implementation ability. They are: the occurrence of multiple internal rates of return, situations of mutually exclusive projects and situations where the internal rate of return is a relative criterion. The question that arises is whether it is actually possible to use the @IRR financial function in such cases and will it lead us to the conclusion that we can solely use the net present value method. The implementation of the @IRR financial function is possible in all situations where the internal rate of return method shows its limitations, since we reach the same results by simpler and a quicker calculations of desired indicators.

Internal Rate of Return; Financial Function

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