A Note on Non Neutrality of Capital Subsidy under IRR Criterian

Srinivasan G

IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: Financial Institutions in India use IRR as a criterion for project evaluation. However they do not include the capital subsidy under the backward area development scheme in the computation of IRR. This note brings out the fact that if the subsidy is included in the IRR computation it will be non neutral. The bias will be infavour of projects which have longer initial flows.

Date: 1981-09-01
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:iim:iimawp:wp00454

Access Statistics for this paper

More papers in IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department Contact information at EDIRC.
Bibliographic data for series maintained by ().