High rates of inflation, interest, and discounting have increased the degree and importance of error in evaluating investments and in making investment decisions. This is particularly strategic to investment-intensive industries such as petroleum and to high-growth industries such as high technology.

The petroleum industry can offest this error by modifying its use of payout, by using inflation-adjusted profitability measures, and by incorporating new options and several refinements that are especially vital to long-term investments.

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