Document Type

Article

Publication Date

1986

Abstract

Present net worth, benefit/cost, and internal rate of return are considered for ranking investments. In some cases, rankings can be contradictory, and the investment criterion can influence inter-project allocations. There are situations, however, when ranking equivalence is assured. In this article, conditions for equivalence in ranking investments are presented using simple graphics and algebra. The conditions are restrictive, and can be effective in demonstrating the need for discretion in selecting an economic criterion for evaluating investments.

Comments

Steven H. Bullard (1986) A note on equivalence in ranking investments, International Journal of Mathematical Education in Science and Technology, 17:3, 377-379, DOI: 10.1080/0020739860170313

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