A note on non neutrality of capital subsidy under IRR criterion

dc.contributor.author	Srinivasan, G.
dc.date.accessioned	2010-03-14T11:56:41Z
dc.date.available	2010-03-14T11:56:41Z
dc.date.copyright	1981-09
dc.date.issued	2010-03-14T11:56:41Z
dc.identifier.uri	http://hdl.handle.net/11718/1247
dc.description.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.	en
dc.language.iso	en	en
dc.relation.ispartofseries	WP;1981/378
dc.subject	Project Evaluation	en
dc.subject	capital subsidy
dc.title	A note on non neutrality of capital subsidy under IRR criterion	en
dc.type	Working Paper	en