Using ROE and IRR for Making Investment Decisions

Abstract: A 4 page continuation of considerations that Acme must make prior to going forward with its international expansion, specifically in assessing the value of the new venture in terms of return on equity and internal rate of return. There is always a degree of uncertainty in new ventures. ROE can provide an indication of whether the venture will be profitable and to what degree it will be profitable. IRR provides a means of "weeding out" investment decisions that cannot be profitable at acceptable levels. The paper also discusses assessing ROE using the DuPont Identity. Bibliography lists 6 sources.

Filename: KSfinGlobChoice.rtf

Pages: 4

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Catagory: Money & Banking / Corporate Finance

Subcatagory: Accounting & Personal Finance

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