[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.