To read the full version of this content please select one of the options below:

Real estate projects and multiple internal rates of return

Journal of Valuation

ISSN: 0263-7480

Article publication date: 1 March 1989


Examines the problem of multiple solutions in relation to the use of the internal rates of return (IRR) as a decision‐making criterion. Attempts to show that positive multiple IRRs occur only in a limited number of cases and in such cases the IRR is not the appropriate measure of return. Argues instead that the true rate of return for such projects is shown to be dependent on the cost of capital. Suggests two methods to deal with this problem: the extended yield method and the return on invested capital method.



Nanthakumaran, N. (1989), "Real estate projects and multiple internal rates of return", Journal of Valuation, Vol. 7 No. 3, pp. 202-217.




Copyright © 1989, MCB UP Limited