Complex economics of simple periodic systems

This paper investigates the financial economics of simple periodic systems. Well-established financial procedures appear to be complicated, and lead to partially biased results. Probability theory is applied, and the focus is on the finances of simple periodic growth processes, in the absence of intermediate divestments. The expected value of the profit rate, derived from accounting measures on an accrual basis, does not depend on the capitalization path. The expected value of capitalization is ...