Growth rate of return for continuous compounding

Input(s)

tt: Time (years)

PI : Profitability Index (dimensionless)

idi_{d}: Reinvestment Rate (fraction)

Output(s)

GRR: Growth Rate of Return (fraction)

Formula(s)

GRR=1tln(PI)+id\mathrm{GRR}=\frac{1}{\mathrm{t}} * \ln (\mathrm{PI})+\mathrm{i}_{\mathrm{d}}

Reference(s)

Mian, M. A. 2011. Project Economics and Decision Analysis Volume 1: Deterministic Models, Second Edition. Tulsa, Oklahoma: PennWell Corporation. Chapter 6, Page: 351.


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