One of the efficiency metrics of Financial Investment defined as:
(1) | \mbox{CAGR} = \left[ \frac{\sum CF^+}{\sum CF^-} \right] ^ {1/t} - 1 |
where
CF^+ = \{ CF^+_0, \ CF^+_1, \ CF^+_2, \ ... \} | Cash Inflows | PV_r[CF^+] | Present Value of future Cash Inflows CF^+ |
CF^- = \{ CF^-_0, \ CF^-_1, \ CF^-_2, \ ... \} | Cash Outflows | PV_r[CF^-] | Present Value of future Cash Outflows CF^- |
See also
Economics / Investment / Financial Investment / Financial Investment Metrics