A Sufficient Condition for a unique Nonnegative Internal Rate of Return: Further Comments

Abstract

In a recent issue of JFQA, Aucamp and Eckardt [1] (henceforth referred to as AE), developed a new sufficient condition for the existence of a unique (and simple) nonnegative internal rate of return (IRR), which includes the one previously formulated by Norstrøm [8] as a particular case. As pointed out by the former authors, their new procedure is appealing since it is easier to apply than the rather involved Sturm-Kaplan [6] method, while being a refinement of Norstrøm's result.