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The Frontiers of Society, Science and Technology, 2020, 2(15); doi: 10.25236/FSST.2020.021505.

The Application Limitations and Relevant Amendments of IRR


Gu Zheng, Gao Jing, Zhang Shuangying

Corresponding Author:
Gu Zheng

State Grid Liaoning Electric Power CO, LTD. Power Electric Research Institute, Shenyang, Liaoning110015, China


The internal rate of return refers to the accumulation of the present value of the net cash flow of the investment project in the entire calculation period, etc. The discount rate at zero hour, which reflects the intrinsic value of the investment project and is not affected by external factors such as the capital market rate of return, has been used as the main indicator of investment project evaluation in practice. In addition, through this concise rate of return, decision makers can easily obtain the characteristics of complex investment projects, and this indicator is easy to understand, which can facilitate communication and exchanges between decision makers and investors, so it becomes an inspection project profitability The main dynamic indicators. However, the internal rate of return law has certain flaws in its method, which makes its application have certain limitations.


limitation, IRR

Cite This Paper

Pingping Wang, Aimin Nie, Juanjuan Cui. On Criteria for Social Stratification from the Perspective of Social Change. The Frontiers of Society, Science and Technology (2020) Vol. 2 Issue 15: 32-36. https://doi.org/10.25236/FSST.2020.021505.


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