VAE 511: Livestock Entrepreneurship (1+0)

AVERAGE ANNUAL PROCEEDS OF RUPEE OUTLAY

•  This method is another method of choosing between the projects and measured by the following formula:

Average annual proceeds of rupee = ( Total proceeds / Life span of project ) / Total Investment

• The projects are estimated by the magnitude of the estimate.
• The major draw back of the undiscounted measures is that for the same data of the project, we will get different rankings depending upon the measure.
• Thus undiscounted measures are inconsistent and incompatible in ranking.