Accounting measures are traditionally considered not significant from an economic point of view. In particular …, accounting rates of return are often regarded economically meaningless or, at the very best, poor surrogates for the IRR, which … accounting/economic is artificial and, taking a capital budgeting perspective, illustrates the strong (formal and conceptual …

The internal rate of return (IRR) is a widely used benchmark for assessing the reliability of the accounting rate of … profitability for a truncated time series where the opening and closing capital stocks provided by the accounting system do not …

accounting literature. While the standard residual income is formally computed as profit minus cost of capital times actual …

Accounting measures are traditionally considered not significant from an economic point of view. In particular …, accounting rates of return are often regarded economically meaningless or, at the very best, poor surrogates for the IRR, which … accounting/economic is artificial and, taking a capital budgeting perspective, illustrates the strong (formal and conceptual …

IRR equation and considering a simple mean of period rates. As a pleasant byproduct, we find that accounting rates of …