The Experts below are selected from a list of 243 Experts worldwide ranked by ideXlab platform

Michael J. Crean - One of the best experts on this subject based on the ideXlab platform.

  • Point of View Revealing the True Meaning of the IRR via Profiling the IRR and Defining the ERR
    Journal of Real Estate Portfolio Management, 2005
    Co-Authors: Michael J. Crean
    Abstract:

    Since the late 1950s, most textbooks and many professors have been inadvertently defining the internal Rate of return (IRR) of an investment incorrectly vis-a-vis the Reinvestment of an investment’s cash flows. The genesis of this unfortunate error can be traced to an article by Renshaw (1957). Most textbooks and many professors have since paraphrased a quotation taken from the Renshaw article that attempted to paraphrase (out of context) the words of Solomon (1956). Both the Renshaw and the Solomon quotations, in their entireties, go on to properly explain the issue of Reinvestment vis-a-vis the IRR. However, the paraphrasing of the partial quotation of Renshaw has perpetuated what some now call the ‘‘Reinvestment Rate controversy.’’ The Renshaw (1957:193) quotation states: ‘‘...the (net) present value (NPV) approach assumes Reinvestment of intermediate cash receipts at the discounting Rate, while the internal Rate-of-return (IRR) approach assumes Reinvestment at the internal Rate...’’

  • Reinvestment Rate Risk Analysis
    Journal of Property Valuation and Investment, 1993
    Co-Authors: Michael J. Crean
    Abstract:

    Offers an analytical tool that measures Reinvestment Rate risk. Expands the knowledge of the concept of Reinvestment vis‐...‐vis the internal Rate of return via the external Rate of return. Concludes that investors should prefer investments that are less sensitive to Reinvestment Rate assumption than vice versa.

John D. Martin - One of the best experts on this subject based on the ideXlab platform.

  • The Reinvestment Rate Assumption Fallacy for IRR and NPV
    SSRN Electronic Journal, 2017
    Co-Authors: Carlo Alberto Magni, John D. Martin
    Abstract:

    The mistaken notion that the internal Rate of return (IRR) and net present value (NPV) contain Reinvestment Rate assumptions lingers in teaching materials and corpoRate practice. The fact is that there are no Reinvestment Rate assumptions built into, or implicit to, the computation and use of either the IRR or NPV. Cash flows thrown off by capital investments do not have to be reinvested and can be distributed to creditors, shareholders, or retained for future investment with no adverse effect on either the IRR or NPV. In this brief note, we first review the theoretical underpinnings of the Rate of return assumption fallacy and offer two possible origins from the academic finance literature that may have been responsible for the Reinvestment Rate fallacy.

  • The Reinvestment Rate Assumption Fallacy for IRR and NPV: A Pedagogical Note
    2017
    Co-Authors: Carlo Alberto Magni, John D. Martin
    Abstract:

    The mistaken notion that the internal Rate of return (IRR) and net present value (NPV) have required Reinvestment Rate assumptions built into them was debunked long ago in the academic finance literature. There are no Reinvestment Rate assumptions built into, or implicit to, the computation and use of either the IRR or NPV. In this brief note, we first review the theoretical underpinnings of the Rate of return assumption fallacy and offer two possible origins from the academic finance literature that may have been responsible for the fallacy.

Am Shandilya - One of the best experts on this subject based on the ideXlab platform.

  • Market penetration and pay-back period analysis of solar photovoltaic system for Indian conditions
    2003
    Co-Authors: M Kolhe, Jc Joshi, G Agnihotri, Am Shandilya
    Abstract:

    The use of pay-back period analysis for economic evaluation of solar photovoltaic (PV) system reinforces the importance of the duration of the system. In a dynamic economic environment, the cost of energy increases at a faster Rate than the common inflation Rate. A time can be ascertained at which the market entry of the PV system will be profitable, i.e. at which the pay-back time drops below a value considered as the market threshold, provided the parameters describing the dynamic economic system remain unchanged. The market penetration of the PV system has been determined in Indian economic conditions and found to depend mainly on PV array costs and energy income Reinvestment Rate. The low PV array cost, high-energy income Reinvestment Rate, high solar cell reference efficiency and high battery efficiency have a substantial effect on the reduction of the energy price and pay-back period with early market penetration by the PV system.

  • Market penetration and pay-back period analysis of a solar photovoltaic system under Indian conditions
    International Journal of Energy Technology and Policy, 2002
    Co-Authors: Mohan Lal Kolhe, Jc Joshi, G Agnihotri, Am Shandilya
    Abstract:

    The use of pay-back period analysis for economic evaluation of solar photovoltaic (PV) system reinforces the importance of the duration of the system. In a dynamic economic environment, the cost of energy increases at a faster Rate than the common inflation Rate. A time can be ascertained at which the market entry of the PV system will be profitable, i.e. at which the pay-back time drops below a value considered as the market threshold, provided the parameters describing the dynamic economic system remain unchanged. The market penetration of the PV system has been determined in Indian economic conditions and found to depend mainly on PV array costs and energy income Reinvestment Rate. The low PV array cost, high-energy income Reinvestment Rate, high solar cell reference efficiency and high battery efficiency have a substantial effect on the reduction of the energy price and pay-back period with early market penetration by the PV system.

Wubiao Zhou - One of the best experts on this subject based on the ideXlab platform.

  • Institutional environment, public-private hybrid forms, and entrepreneurial Reinvestment in a transition economy
    Journal of Business Venturing, 2017
    Co-Authors: Wubiao Zhou
    Abstract:

    Abstract Many less developed and, especially, transition economies have had high levels of entrepreneurial Reinvestment for relatively long periods despite the absence of developed government institutions. To resolve this puzzle, this study proposes that many entrepreneurial firms in these economies have been actively engaged in political activities, through which organizational arrangements are created to co-opt government agencies into their organizational structures to manipulate and even control unfavorable institutional environments. It empirically evaluates the role of one such organizational arrangement – public-private hybrid forms – in China's gradual reform period. It suggests that, through protecting property rights and facilitating access to key resources and opportunities, public-private hybrid forms may act as a substitute for deficient market and legal institutions, thus facilitating entrepreneurial Reinvestment. The findings from a national sample of Chinese entrepreneurial firms support our propositions. In general, entrepreneurial firms adopting public-private hybrid forms enjoy higher entrepreneurial Reinvestment Rates than pure private firms during gradual reform; and this may be the case because such forms help to both protect private property rights and access key resources and opportunities. In addition, the association between the forms and Reinvestment Rate is found higher under less developed government institutions.

Mohan Lal Kolhe - One of the best experts on this subject based on the ideXlab platform.

  • Market penetration and pay-back period analysis of a solar photovoltaic system under Indian conditions
    General Economics and Teaching, 2005
    Co-Authors: Mohan Lal Kolhe
    Abstract:

    The use of pay-back period analysis for economic evaluation of solar photovoltaic (PV) system reinforces the importance of the duration of the system. In a dynamic economic environment, the cost of energy increases at a faster Rate than the common inflation Rate. A time can be ascertained at which the market entry of the PV system will be profitable, i.e. at which the pay-back time drops below a value considered as the market threshold, provided the parameters describing the dynamic economic system remain unchanged. The market penetration of the PV system has been determined in Indian economic conditions and found to depend mainly on PV array costs and energy income Reinvestment Rate. The low PV array cost, high-energy income Reinvestment Rate, high solar cell reference efficiency and high battery efficiency have a substantial effect on the reduction of the energy price and pay-back period with early market penetration by the PV system. Keywords: photovoltaic (PV) system; pay-back period; market penetration; renewable energy economics.

  • Market penetration and pay-back period analysis of a solar photovoltaic system under Indian conditions
    International Journal of Energy Technology and Policy, 2002
    Co-Authors: Mohan Lal Kolhe, Jc Joshi, G Agnihotri, Am Shandilya
    Abstract:

    The use of pay-back period analysis for economic evaluation of solar photovoltaic (PV) system reinforces the importance of the duration of the system. In a dynamic economic environment, the cost of energy increases at a faster Rate than the common inflation Rate. A time can be ascertained at which the market entry of the PV system will be profitable, i.e. at which the pay-back time drops below a value considered as the market threshold, provided the parameters describing the dynamic economic system remain unchanged. The market penetration of the PV system has been determined in Indian economic conditions and found to depend mainly on PV array costs and energy income Reinvestment Rate. The low PV array cost, high-energy income Reinvestment Rate, high solar cell reference efficiency and high battery efficiency have a substantial effect on the reduction of the energy price and pay-back period with early market penetration by the PV system.