Technical Note: Economic Rates of Return and Investment Analysis

Peter J. Barry and Lindon Robison

The Engineering Economist, 2014, vol. 59, issue 3, 231-236

Abstract: This article shows that a given series of single-period economic rates of return can be aggregated into either an economic average internal rate of return or a modified internal rate of return, depending upon the aggregation process (weighted average or geometric mean) and on the use of traditional economic depreciation to determine capital values for each time period. The results are shown analytically and numerically and evaluated under different levels of discount rates. The modified internal rate of return is also a form of the average internal rate of return based on the geometric mean, rather than the arithmetic mean.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1080/0013791X.2013.855857 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:uteexx:v:59:y:2014:i:3:p:231-236

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/UTEE20

DOI: 10.1080/0013791X.2013.855857

Access Statistics for this article

The Engineering Economist is currently edited by Sarah Ryan

More articles in The Engineering Economist from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().