ON THE FINDAMENTALS OF ECONOMIC EVALUATION

Resumen

This artícle develops a rationale for economic evaluation based on the premise that one's economic objective is to maximize his own wealth. This leads to a reconciliation between the views of those supporting the inter­ nal rate of return method and those supporting present worth methods of analysis. It also
leads to a reconciliation between the maior schools of thought regarding appropriate methodology for dealing with problems In which múltiple rates of return are possible.