Accounting and economic measures are actually closely connected in capital budgeting. The average accounting rate of return is the correct economic yield of a project, not just a poor substitute for the IRR. Residual income maximization is equivalent to NPV maximization, making it a useful decision-making tool. The Chisini mean and a comprehensive cost of capital play key roles in harmonizing accounting rate of return, internal rate of return, residual income, and net present value. In essence, these different measures all reflect the same underlying concept of project profitability.