What question did this study set out to answer?

The research aims to explore issues surrounding accounting accruals in achieving consistency between IRR and ROI.

Present Value Depreciation and the Disaggregation Problem.

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Examines accounting accruals and their impact on IRR-ROI consistency in financial analysis, suggesting improvements.

The research aims to explore issues surrounding accounting accruals in achieving consistency between IRR and ROI.
Literature review of present value depreciation and its implications.
Analysis of the effect of accounting accruals on IRR-ROI consistency.
Examination of the disaggregation of cash flows for financial projects.
Demonstrated that accounting accruals complicate present value depreciation.
Found that inconsistencies between IRR and ROI may arise from incomplete disaggregation of cash flows.
Highlighted that achieving consistency could lead to financial interpretations that are misrepresented.

Edward V. McIntyre (1977) studied this question.

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