Relationship betwenn internal rates of return and accounting rates of return

Sebastien Yafil (1) , Denis Babusiaux (1)

1 IFPEN - IFP Energies nouvelles

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.

Domaines: Economies et finances

Sebastien Yafil, Denis Babusiaux. Relationship betwenn internal rates of return and accounting rates of return: Cahiers du CEG, n° 23. 1995. ⟨hal-02435452⟩