the AROI approach constitutes a link between arbitrage choice theory and corporate
investment theory, and shows that explicit discounting is not necessary for measuring economic
profitability. Practically, the AROI is a user-friendly, easy-to-compute rate of return derived from the
same set of data required by the net present value (NPV). Also, it does not incur the difficulties met by
the internal rate of return (IRR): in particular, it is unique and it is based on economically significant
capital values (i.e., market-driven values). As such, the AROI significantly expresses the efficiency of the
project's invested capital.