[OPE-L:3022] Re: Straight and Moral

Duncan K Foley (dkf2@columbia.edu)
Sat, 14 Sep 1996 13:55:25 -0700 (PDT)

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On Sat, 14 Sep 1996, John Ernst wrote:

> Duncan,
>
>
> Am I wrong in assuming that the method you
> refer to as "standard" assumes that the price
> of the output is constant over the 10 periods?
>

Yes. In order to calculate the internal rate of return you need to know
the path of prices, which may not be constant.

Duncan