a reply to Chai-on (ope-l 1541),
I don't disagree that a profit rate calculated on "replacement costs"
has *some* meaning. For instance, accountants evidently use it as
a way of correcting the actual historical rate downward, due to its
inflationary bias.
But I think that investment decisions are made on the basis of present
costs (and future costs, when relevant) and expected *future* returns.
Andrew Kliman