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Abstract
By focusing on die concept of incentive consistency we clarify die conditions under which the capital value of a project is a monotonic declining function of the discount rate. We show contradicting earlier writers, that the optimal choice of the project lifetime does not guarantee monotonicity. Previous authors have made use of the property we call incentive consistency, but as a consequence of optimality. We show that projects undertaken by reasonably sensible economic agents will have nice properties. Our main contribution lies in showing that less than full optimizing behaviour is sufficient, thereby expanding the set of well-behaved projects.