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Relationship betwenn internal rates of return and accounting rates of return

Author

Listed:
  • Sebastien Yafil

    (IFPEN - IFP Energies nouvelles)

  • Denis Babusiaux

    (IFPEN - IFP Energies nouvelles)

Abstract

The purpose of this paper is to provide a synthesis of the relationship between intemal rates of retum and accounting rates of return. It restates and completes a number of classic results by providing demonstrations that are sometimes more general and often simpler than previous demonstrations. The example of a single project is briefly presented. Emphasis is placed on a firm in steady state growth and on the interpretation of accounting rates of retum as interna! rates of return that vary in time.

Suggested Citation

  • Sebastien Yafil & Denis Babusiaux, 1995. "Relationship betwenn internal rates of return and accounting rates of return," Working Papers hal-02435452, HAL.
    • Handle: RePEc:hal:wpaper:hal-02435452
    Note: View the original document on HAL open archive server: https://ifp.hal.science/hal-02435452
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    References listed on IDEAS

    as
    1. Gallo, Paolo & Peccati, Lorenzo, 1993. "The appraisal of industrial investments: A new method and a case study," International Journal of Production Economics, Elsevier, vol. 30(1), pages 465-476, July.
    2. Christophe Barret & Philippe Chollet, 1990. "Canadian Gas Exports : Modeling a Market in Disequilibrium," Working Papers hal-02432570, HAL.
    3. Kay, John A, 1976. "Accountants, Too, Could Be Happy in a Golden Age: The Accountant's Rate of Profit and the Internal Rate of Return," Oxford Economic Papers, Oxford University Press, vol. 28(3), pages 447-460, November.
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