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Article
Teaching MIRR to Improve Comprehension of Investment Performance Evaluation Techniques: A Comment
Journal of Economics and Finance Education
  • John Hatem, Georgia Southern University
  • Ken Johnston, Berry College
  • Bill Z. Yang, Georgia Southern University
Document Type
Article
Publication Date
1-1-2013
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.

Citation Information
John Hatem, Ken Johnston and Bill Z. Yang. "Teaching MIRR to Improve Comprehension of Investment Performance Evaluation Techniques: A Comment" Journal of Economics and Finance Education Vol. 12 Iss. 2 (2013) p. 56 - 59
Available at: http://works.bepress.com/john-hatem1/6/