An Economic Analysis with the Productive Rate of Return

• 발행기관: 한국산업경영시스템학회
• 저자명: Jin Wook Kim(김진욱) Immo Son(손임모) Jaiwook Shin(신재욱)
• 간행물 정보: 『산업경영시스템학회지』제40권 제1호, 50~56쪽, 전체 7쪽
• 주제분류: 경제경영 > 경영학
• 파일형태: PDF
• 발행일자: 2017.03.30

영문 초록

The IRR (internal rate of return) is often used by investors for the evaluation of engineering projects. Unfortunately, it is widely known that it has serial flaws. Also, External rate of returns (ERRs) such as ARR (Average Rate of Return) or MIRR (MIRR, Modified Internal Rate of Return) do not differentiate between the real investment and the expenditure. The PRR (Productive rate of return) is faithful to the conception of the return on investment. The PRR uses the effective investment instead of the initial investment. In this paper, we examined two cases of the engineering project. the one is a traditional engineering project with financing activity, another is the project with R&D. Although the IRR has only one value, it overestimates or underestimate profitabilities of Engineering Projects. The ARR and the MARR assume that a returned cash reinvest other projects or assets instead of the project currently executing. Thus they are only one value of a project’s profitability, unlike the IRR. But the ARR does not classify into the effective investment and non-investment expenditure. It only accepts an initial expenditure as for an investment. The MIRR also fails to classify into the investment and the expenditure. It has an error of making a loss down as the investment. The IRR works as efficiently as a NPW (Net Present Worth). It clearly expresses a rate of return in respect of an investment in an engineering project with a loan. And it shows its ability in an engineering project with a R&D investment.

목차

1. 서 론

2. 투자수익률에 대한 정의

3. 전형적인 생산투자사업 사례

4. R&D가 포함되는 생산투자사업 사례

5. 결 론

키워드

Net Present Value Cash Flow Table Profit and Loss Statement External Rate of Return Internal Rate of Return Productive Rate of Return