African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4188

Full Length Research Paper

Analysis of internal rate of return on investments: Dynamic and static approach

Branislav Maric1, Andrea Ivanisevic1*, Slavica Mitrovic1, Sreto Aleksic2 and Mihailo Rovcanin3
  1Department for Industrial Engineering and Management, Faculty of Technical Sciences, University of Novi Sad, Serbia. 2Faculty of Entrepreneurial Studies, Alfa University in Belgrade, Serbia. 3Coal Mine Pljevlja, Montenegro.
Email: [email protected]

  •  Accepted: 25 January 2011
  •  Published: 18 April 2011

Abstract

 

The success of an investment is determined and described statically and dynamically by several parameters. One of the key indicators of justification of a project implementation is the internal rate of return which is determined statically and dynamically in each project. Renowned scientific methods, such as the method of classification, statistical method and methods of analysis and synthesis were used in establishing a connection between these indicators. The obtained results confirmed the initial hypothesis about correlation and numerical values of the rate of return of investment.

 

Key words: Investment, internal rate of return, efficiency and effectiveness.