Title :
Review on the Proportional Method of Bidirectional Compositor
Author :
Li, Haitao ; Liu, Xiaoke
Author_Institution :
Sch. of Manage., Tianjin Univ., Tianjin, China
Abstract :
This paper reviews on the proportional method of bidirectional compositor of the project selection method under constraints. Firstly this paper explains the economic meaning of the internal rate of return and thinks it doesn´t express the rate of return of unit investment and can´t be used as the concept of marginal revenue so the theory foundation of the method is wrong. And then it analyzes the specific applicable scope of the method that scholars in China never pay attention to when introducing and using it. Finally through the validity proof this paper thinks the proportional method of bidirectional compositor is essentially NPVR ranking method in the special condition. This method has a limited applicable scope and has not good use effect and in the practical application only can be used as an approximate method.
Keywords :
financial management; investment; NPVR ranking method; bidirectional compositor proportional method; internal rate of return; project selection method; unit investment; Costs; Economic indicators; Equations; Investments; Portfolios; Project management; Proposals;
Conference_Titel :
Management and Service Science, 2009. MASS '09. International Conference on
Conference_Location :
Wuhan
Print_ISBN :
978-1-4244-4638-4
Electronic_ISBN :
978-1-4244-4639-1
DOI :
10.1109/ICMSS.2009.5305416