Abstract
The internal rate of return (IRR) is a common financial indicator for private finance initiative (PFI) projects. Due to the long and complicated cash flow nature of PFI projects, more plausible IRR techniques are necessary for appropriate project evaluation and ranking. However, not all the published articles researching on IRR techniques are reliable. Given the importance of computing the profitability of PFI projects, this paper is intended to introduce three reliable IRR methods, which are proven to be consistent with net present value. Examples are used to illustrate their utility. The paper is of high value as it guides industry's practitioners to use proper IRR methods for selecting PFI projects. It also provides academic researchers a platform to explore more robust methods. Copyright © 2010 ASCE.
Original language | English |
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Pages (from-to) | 811-814 |
Journal | Journal of Construction Engineering and Management |
Volume | 136 |
Issue number | 7 |
DOIs | |
Publication status | Published - Jul 2010 |
Citation
Chiang, Y. H., Cheng, E. W. L., & Lam, P. T. I. (2010). Employing the net present value-consistent IRR methods for PFI contracts. Journal of Construction Engineering and Management, 136(7), 811-814. doi: 10.1061/(ASCE)CO.1943-7862.0000179Keywords
- Profits
- Private sector
- Value engineering
- Financial management
- Industries
- Contracts
- Colleges and universities
- Financing
- Investments
- Decision making
- Revenues