Having underlined this, IRR index is a better instrument--from a mathematical point of view--than NPV, but it is, itself, less than perfect; because, in first place, the imperfections that 'plague' IRR are structural rather than (merely) operational, being generated by the very theory this index is build upon--according to which internal rate of return exist--and, therefore, is useful--only if NPV index is used under certain conditions (e.
For this to ever be actually rectified, economist perceived the need to overhaul premises of IRR model, the goal being to enhance reflecting capability of(computed values of)internal rate of return as to profitability rate of investment projects in general; the results of this demarche is--arguably--index which goes by the name of modified internal rate of return (Modified IRR--MIRR).
That aside, the insidious problem is that it is not immediately obvious from the calculated internal rate of return
when these problems are present.
an internal rate of return greater than -1) need not exist at all for an equation even if sign changes occur.
Sturm's Theorem gives the possible number of distinct internal rates of return, while Budan's Theorem counts each multiple internal rate of return separately.
In accordance with the Private Securities Litigation Reform Act of 1995, we caution you that this news release contains forward-looking statements about Washington Mutual and Wells Fargo, including (1) the expected effective date of the transaction, (2) the expected percentage of Washington Mutual loan and servicing employees who will join Wells Fargo as part of the transaction and when they are expected to join, (3) Wells Fargo's expectation that the transaction will meet its required internal rate of return
, and (4) Wells Fargo's expectations as to the balance of its mortgage originations and servicing and the diversity of its revenue sources after the transaction.
This transaction is consistent with our acquisition criteria, including our internal rate of return
requirements, and our methodical approach to growth for 2006 and beyond.
LaSalle Hotel Properties will recognize an approximate gain of $38 million including its preferred distribution of approximately $25 million resulting in a leveraged internal rate of return
("IRR") of approximately 47% for the six year hold period.
In fact, in many cases, internal rate of returns
are approaching double digits.