
handle: 11391/153347
It is well known that mathematical conditions are not sufficient to recover the financial rate of return anomalies in investment projects, when we have multiple roots. In this note, an ex-post agricultural investment with multiple roots co-financed by EU funds is investigated to recover the uniqueness and the economic meaning of the rate of return associated to the project. Our results show that methodological issues become relevant for policy-makers when public institutions use selective thresholds in their decision-making thus suggesting that financing operations make the correctness of evaluating the ROR questionable.
internal rate of return; multiple roots; optimal co-financing.
internal rate of return; multiple roots; optimal co-financing.
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