In a message dated 4/30/03 3:07:18 AM Eastern Daylight Time, sbarbar@gwdg.de
writes:
> # Hi,
>
> # define as r the revenue and as c the cost
> # for example:
> r<- 60
> c<- 50
> # function to obtain the rate of return:
> ror<- function(r,c){
> foo<- r/c-1
> return(foo)
> }
> # the command ror(r,c) gives you the required rate of return
> ror(r,c)
>
> best regards
>
> s.
>
Hi there. Be more specific---and even that my not be enough. What is it that
you are trying to do in R? This is a trick question. Read some good book on
finance/financial accounting. How you calculate rate of retun depends on the
the project. The above formula works under very (very) restricted assumptions
and very (very) simple situations. People are still writing doctoral
dissertations on it.
---anupam.
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The Moving Finger writes; and, having writ,
Moves on: nor all your Piety nor Wit
Shall lure it back to cancel half a Line,
Nor all your Tears wash out a Word of it.
--Omar Khyyam, Rubaiyat (1120 AD)
Fitzgerald translation (1859)
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