Overall Rate-of-Return (ORR)

  • Rosalie T. Ruegg
  • Harold E. Marshall


The ORR1 is the annual yield from a project over the study period, taking into account reinvestment of interim receipts. Project earnings and earnings from reinvestment are accumulated to the end of the study period and set equal to the present value of cost to compute the ORR.


Economic Evaluation Discount Rate Cash Flow Investment Cost Size Decision 
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  1. American Society for Testing and Materials (ASTM). 1985. Standard Practice for Measuring Internal Rates of Return for Investments in Buildings and Building Systems. E 1057–85. Philadelphia: ASTM.Google Scholar
  2. Au, Tung, and Thomas P. Au. 1983. Engineering Economics for Capital Investment Analysis. Boston: Allyn and Bacon, Inc.Google Scholar
  3. Beaves, Robert G. 1988. Net present value and rate of return: implicit and explicit reinvestment assumptions. The Engineering Economist 33(4):275–302.CrossRefGoogle Scholar
  4. Jaffe, Austin J. 1977. Is there a “new” internal rate of return literature? AREUEA Journal 5:482–502.CrossRefGoogle Scholar
  5. Lohmann, Jack R. 1988. The IRR, NPV and the fallacy of the reinvestment rate assumptions. The Engineering Economist 33(4):303–330.CrossRefGoogle Scholar
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Copyright information

© Springer Science+Business Media New York 1990

Authors and Affiliations

  • Rosalie T. Ruegg
  • Harold E. Marshall

There are no affiliations available

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