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http://hdl.handle.net/11718/1247| Title: | A note on non neutrality of capital subsidy under IRR criterion |
| Authors: | Srinivasan, G. |
| Keywords: | Project Evaluation;capital subsidy |
| Issue Date: | 14-Mar-2010 |
| Series/Report no.: | WP;1981/378 |
| Abstract: | Financial Institutions in India use IRR as a criterion for project evaluation. However they do not include the capital subsidy under the backward area development scheme in the computation of IRR. This note brings out the fact that if the subsidy is included in the IRR computation it will be non neutral. The bias will be infavour of projects which have longer initial flows. |
| URI: | http://hdl.handle.net/11718/1247 |
| Appears in Collections: | Working Papers |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| WP 1981_378.pdf | 82.85 kB | Adobe PDF | View/Open |
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