Growth Rates, Averages, and Capital Budgeting Math

These pages cover the arithmetic that turns periodic performance, averages, and project cash flows into comparable valuation inputs.

In this section

• Compound Growth Rate: Understanding the Basics
  A detailed exploration of the Compound Growth Rate, its calculation, significance, and applications.
• Harmonic Mean: Comprehensive Definition, Formula, Applications, and Examples
  Explore the comprehensive definition, formula, applications, and detailed examples of the harmonic mean, a specialized type of numerical average used in finance and beyond.
• Multiple IRRs: Understanding the Anomaly in Project Evaluation
  Explore the concept of Multiple Internal Rates of Return (IRRs), a phenomenon occurring in projects with unconventional cash flows, and understand its implications, methodologies, and applications in financial decision-making.
• Simple Growth Rate: Basic Measurement of Growth or Decline
  Simple Growth Rate is a fundamental metric used to evaluate the growth or decline of a value over a specified period without averaging over multiple years.