Growth rate of return for continuous compounding

Input(s)

$t$: Time (years)

PI : Profitability Index (dimensionless)

$i_{d}$: Reinvestment Rate (fraction)

Output(s)

GRR: Growth Rate of Return (fraction)

Formula(s)

$$ \mathrm{GRR}=\frac{1}{\mathrm{t}} * \ln (\mathrm{PI})+\mathrm{i}_{\mathrm{d}} $$

Reference(s)

Mian, M. A. 2011. Project Economics and Decision Analysis Volume 1: Deterministic Models, Second Edition. Tulsa, Oklahoma: PennWell Corporation. Chapter 6, Page: 351.