Allin,
Could you please say a bit more. Perhaps you
could use the numbers in the example so that
I can catch on to what you are saying.
Thanks,
John
At 10:48 AM 3/10/97 -0800, you wrote:
>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
>
>
>