This paper deals with capital budgeting decisions under uncertainty. We present an Aggregate Return On Investment (AROI …), obtained as the ratio of total (undiscounted) cash flow to total invested capital and show that it is a genuine rate of return … ranks any bundle of different-risk competing projects. Relations with other criteria such as Modified Internal Rate of …

In investment appraisal, uncertainty can be managed through intervals or fuzzy numbers because the arithmetical … and fuzzy numbers to the Average Internal Rate of Return (AIRR), recently introduced for overcoming the problems of the … traditional Internal Rate of Return (IRR). In the setting of interval and fuzzy arithmetic, we establish relations between the …

The recent notion of Average Internal Rate of Return (AIRR) [Magni 2010, The Engineering Economist, 55(2), 150 …-180] completely solves the long-standing problem of the internal rate of return (IRR). While the AIRR is a return measure, this paper … depend on the market rate, and is a return measure, for it is a mean of one-period return rates, weighed by the outstanding …

Internal Rate of Return (AIRR) is presented, which overcome all the IRR difficulties. In particular, the AIRR approach enables … to prove that (1) a project is not uniquely associated with a return rate, but with a return function, which maps … aggregate capitals to rates of return; (2) any definition of rate of return appearing in the (past and) future literature is a …

) connections existing between economic measures and accounting measures. In particular, the average accounting rate of return is … average accounting rate generates a decision rule which is logically equivalent to the NPV rule for both accept …/reject decisions and project ranking. The paper also shows that maximization of the simple arithmetic mean of residual incomes is …

The properties of information, including "information uncertainty", can be understood only Bayesianly. Common … formulations that define information uncertainty in terms of just statistical "precision" (i.e. sampling variance), or any one … affecting f(x|φ,⋅), information uncertainty alters posterior beliefs f(φ|x,⋅), and therefore also asset prices and expected …

interest rate uncertainty on investment decision. When the interest rate is low an increase in interest rate volatility … shadow rate is substantially below the bound, the decision to invest or wait no longer depends on interest rate uncertainty …This paper examines irreversible investment decisions when the interest rate is stochastic and constrained by a zero …

other asset markets. These premiums have their roots in fundamentals and will vary as a function of uncertainty about the … economy, the risk aversion of investors, information uncertainty and fear of catastrophe, among other factors. In practice …