## 469. J. A. Kay, "Accountants, Too, Could be Happy in a Golden

Integration and substitution of (g-d) for 1; gives this result on the same lines as previous proofs.

TABLE I The accountant's data

Av. book valU8 of Net Profit

454 RATE OF PROFIT AND THE INTERNAL RATE OF RETURN

Integrating over all machines and subtracting (17) from (16) yields

(16)

(17)

456 RATE OF PROFIT AND THE INTERNAL RATE OF RETURN

136 will succeed, for expanding firms. Extension of this analysis to the case of balanced growth is straight-

depreciation scheme; 137 For (a) we may propose a depreciation scheme

v*(T) = erT [ m-J {f(t)-g(t)}e-rl dt] (24) o

1 See J. J. Mauriel and R. N. Anthony, 'Misevaluation of investment center performance', Har1Jard BUlJineaa Review, 44, 1966, pp. 9S-105. It is also proposed as a basis for corporate taxation in J. W. Bennett and G. C. Harcourt, 'Taxation and business surplus', Econ. Record, 36 (1960), pp. 425--8.