Advertisement

Overall Rate-of-Return (ORR)

  • Rosalie T. Ruegg
  • Harold E. Marshall

Abstract

The ORR1 is the annual yield from a project over the study period, taking into account reinvestment of interim receipts. Project earnings and earnings from reinvestment are accumulated to the end of the study period and set equal to the present value of cost to compute the ORR.

Keywords

Economic Evaluation Discount Rate Cash Flow Investment Cost Size Decision 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. American Society for Testing and Materials (ASTM). 1985. Standard Practice for Measuring Internal Rates of Return for Investments in Buildings and Building Systems. E 1057–85. Philadelphia: ASTM.Google Scholar
  2. Au, Tung, and Thomas P. Au. 1983. Engineering Economics for Capital Investment Analysis. Boston: Allyn and Bacon, Inc.Google Scholar
  3. Beaves, Robert G. 1988. Net present value and rate of return: implicit and explicit reinvestment assumptions. The Engineering Economist 33(4):275–302.CrossRefGoogle Scholar
  4. Jaffe, Austin J. 1977. Is there a “new” internal rate of return literature? AREUEA Journal 5:482–502.CrossRefGoogle Scholar
  5. Lohmann, Jack R. 1988. The IRR, NPV and the fallacy of the reinvestment rate assumptions. The Engineering Economist 33(4):303–330.CrossRefGoogle Scholar
  6. Marshall, Harold E. 1983. Recommended Practice for Measuring Net Benefits and Internal Rates of Return for Investments in Buildings and Building Systems. NBSIR 83–2657. Gaithersburg, MD: National Bureau of Standards.Google Scholar
  7. Ruegg, Rosalie T. 1989 (In Press). The internal rate of return and the reinvestment rate controversy: an attempt at clarification. Persistent Problems in Investment Appraisal. American Institute of Chemical Engineering Symposium Series.Google Scholar
  8. Weston, J. Fred, and Eugene F. Brigham. 1981. Managerial Finance. Hinsdale, IL: Dryden Press.Google Scholar
  9. White, John A., Marvin H. Agee, and Kenneth E. Case. 1984. Principles of Engineering Economic Analysis. New York: John Wiley & Sons, Inc.Google Scholar

Copyright information

© Springer Science+Business Media New York 1990

Authors and Affiliations

  • Rosalie T. Ruegg
  • Harold E. Marshall

There are no affiliations available

Personalised recommendations