Growth rate of return for continuous compounding
Input(s)
\(t\): Time (years)
PI : Profitability Index (dimensionless)
\(i_{d}\): Reinvestment Rate (fraction)
Output(s)
GRR: Growth Rate of Return (fraction)
Formula(s)
\[
\mathrm{GRR}=\frac{1}{\mathrm{t}} * \ln (\mathrm{PI})+\mathrm{i}_{\mathrm{d}}
\]
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.