[OPE-L:4334] Re: Problems in Vol. III

john erns (ernst@pipeline.com)
Mon, 10 Mar 1997 12:06:06 -0800 (PST)

[ show plain text ]


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.



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