The Concept of investment For a one period investment, the ror can be evaluated each year R t+1 For investments that generate returns in many periods, there are two ways of describing the rate of return ROR in year t-yield/investment Often ask what is rate of return to an investment project?The Concept of Investment • For a one period investment, the ROR can be evaluated each year. • For investments that generate returns in many periods, there are two ways of describing the rate of return. – ROR in year t = yield/investment. – Often ask: What is rate of return to an investment project? t t 1 t t p p R p + − =