Projetos com mais de duas variações de sinal e o critério da taxa interna de retorno

Abstract

For the case of an investment project of which  the cash flow presents more than two changes of sign, the internal rate of return  (IRR) criterion is not always aplicable. It is necessary to assure the uniqueness of the IRR. Making use of additions only, this can be efficiently accomplished via the construction of the so called Vincent´s diagonals or Pratt-Hammond´s borders. In this paper, presenting a formal justification for the procedure based on the Vincent´s diagonals, it is proposed an integration with the Pratt-Hammond´s borders.