Traditional Methods of Appraisal

  • C. J. Hawkins
  • D. W. Pearce
Part of the Macmillan Studies in Economics book series (MSE)


It should be stressed from the outset that to virtually all economists the only plausible way to choose between different investments is to use a ‘discounting’ method of appraisal. In industry at the present time, however, most of the methods used are simple non-discounting methods. The most important of these are:
  1. (a)

    the pay-back method;

  2. (b)

    the peak-profit method;

  3. (c)

    the average-profit method.



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Copyright information

© C. J. Hawkins and D. W. Pearce 1971

Authors and Affiliations

  • C. J. Hawkins
    • 1
  • D. W. Pearce
    • 2
  1. 1.University of SouthamptonUK
  2. 2.University of AberdeenUK

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