Decision Making Using Multiple Rates of Return: An Alternative Approach

Internal rate of return (iror) method as a decision making tool receives widespread use and acceptance in economic analysis. when performing economic analysis using iror method, multiple rates might exist, in such cases these rates might be misleading. this research aims at presenting a realistic approach for resolving the multiple rate of return (mror) problem. a proposed approach is presented and illustrated through demonstrative cases. the key advantage of the proposed approach is that it reflects real life opportunities and its decisions are consistent with worth methods as well as with other approaches. relevant approaches of well-known authors are presented discussed and critiqued