Previous message: Allin Cottrell: "[OPE-L:4357] Re: Mandel vs. Baran-Sweezy"
On Tue, 11 Mar 1997, I wrote:
> (1) If you assume that capitalist 2 sets aside $100 per year
> as depreciation allowance, and is able -- as Paul says -- to
> deposit this at interest, then we can recalculate the IRR
> for capital 2 as the r that solves:
>
> 2000 = sum(t = 1 to 9)[300/(1 + r)^t] + 1200/[(1 + r)^10]
>
> This gives r = 11.9 percent.
Oops. Should be
2000 = sum(t = 1 to 9)[300/(1 + r)^t] + 1300/[(1 + r)^10]
^
for r = 12.2 percent.
Allin.