In this work we illustrate a simple logical framework serving the purpose of assessing the economic profitability and measuring value creation in a solar photovoltaic (PhV) project and, in general, in a replacement project where the cash-flow stream is nonnegative, with some strictly positive...

Building upon Magni (2011)'s approach, we propose a new rate of return measuring a project's economic profitability. It is called the intrinsic rate of return (IROR). It is defined as the ratio of project return to project's intrinsic value. The IROR approach decomposes the NPV into project...