ASTM E1057-15 (R2020)e1 PDF Download
Standard EN Sample
Standard Practice for Measuring Internal Rate of Return and Adjusted Internal Rate of Return for Investments in Buildings and Building Systems
Also Known As:
ASTM E1057-15 (R2020)e1 provides guidelines for calculating and interpreting the IRR and AIRR measures in the evaluation of building designs, systems, and equipment.
The standard explains that the IRR method is commonly used in finance and economics to measure the percentage yield on an investment. It is suitable for assessing the economic efficiency of a building or building system by determining whether the time-adjusted benefits outweigh the time-adjusted costs over a specified period. However, the IRR method has limitations when it comes to selecting among projects competing for limited funding.
On the other hand, the AIRR method is a measure of the overall rate of return that an investor can expect from an investment over a designated study period. It is not only suitable for evaluating the economic efficiency of a building or building system but also for comparing and selecting alternatives in a scenario where there is a limited budget. The AIRR method addresses some of the deficiencies of the IRR but not all.
| Descriptors | building systems, adjusted internal rate of return, internal rate of return, overall rate of return, ,Building Economics,Building Structures |
| ICS Codes | 91.010.20 - Contractual aspects |
| Language(s) | English |
| File Size | 174.1 KB |
