[OPE-L:4333] Re: Problems in Vol. III

Allin Cottrel (cottrell@wfu.edu)
Mon, 10 Mar 1997 10:48:36 -0800 (PST)

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On Mon, 10 Mar 1997, john ernst wrote:

> The rates of return which, at first, seemed
> the same, diverge over time as the capitalist with the
> machine withdraws funds collected as depreciation. Risk
> aside, of the two this capitalist seems to be in the
> better position. Agreed?
>
> If so, how we compute the rate of profit becomes the problem.

You'd compute it as the IRR or MEC, wouldn't you?

Allin Cottrell
Department of Economics
Wake Forest University