=+HaI Edstrom argues that RI is misleading and gives the foIlowing example to illustrate his objections: 'I have a project that will produce net cash flows of f400000 per annum far the next 5 years. It will then be obsolete and worthless. The initial investment is f1500000 and Associated Engineering uses straight line depreciation. Under RI, my performance varies for each of the 5 years, which is quite ridiculous, as my true performance as shown by profit (i.e., net cash flow less depreciation) remains stable. RI is obviously accounting rubbish!'

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