The return was positive and the alternative was better

# Self-authored for the EML case corpus (no external origin). A project returned
# five percent on its capital, the return is real and correctly measured, and it
# is reported as a success because it is positive. What the same capital would
# have returned in the best alternative is computed below.
#
# The report is careful. It uses the real capital committed; the return is the
# honest realised gain over that capital; it is positive; and the intent is
# exactly 'the capital was well used'.
#
# The cost of using capital on this project is the return forgone on the best
# alternative of equal risk, and that alternative paid eight percent - so the
# positive return is a loss of three percent against what the capital could
# have earned.

100000 => capital
5 => project_return_percent
8 => alternative_return_percent

int(capital * project_return_percent / 100) => project_return
int(capital * alternative_return_percent / 100) => alternative_return
project_return - alternative_return => economic_profit
alternative_return_percent - project_return_percent => percentage_points_forgone
int(alternative_return * 10000 / capital) => alternative_return_per_myriad_of_capital
int(economic_profit * 10000 / alternative_return) => shortfall_per_myriad_of_the_alternative

"capital                         : " + str(capital) ^0
"project return                  : " + str(project_return_percent) + " percent, " + str(project_return) ^0
"best alternative, equal risk    : " + str(alternative_return_percent) + " percent, " + str(alternative_return) ^0
"" ^0
"accounting profit               : " + str(project_return) + ", positive" ^0
"economic profit                 : " + str(economic_profit) + ", negative" ^0
"percentage points forgone       : " + str(percentage_points_forgone) ^0
"shortfall vs the alternative    : " + str(shortfall_per_myriad_of_the_alternative) + " per ten thousand" ^0
"" ^0

# ---- what the report verified ----

"the return report" ^0
"  capital : the real amount committed" ^0
"  return : the honest realised gain, " + str(project_return) ^0
"  sign : positive" ^0
"  intent : the capital was well used" ^0
"  gains misstated : 0" ^0
"  verdict : FIVE PERCENT, A SUCCESS" ^0
"" ^0
"  measuring the real realised gain over the real capital is" ^0
"  the part done right here, and it is why " + str(project_return) + " is exactly" ^0
"  what the project earned" ^0
"" ^0

# ---- what the capital could have earned ----

"opportunity cost" ^0
"  what using capital here costs : not using it elsewhere" ^0
"  the best elsewhere at equal risk : " + str(alternative_return_percent) + " percent, " + str(alternative_return) ^0
"  so the true cost of the project : " + str(alternative_return) + ", the forgone return" ^0
"  what the project earned against that cost : " + str(economic_profit) ^0
"  a positive return : is positive against zero, and zero" ^0
"    was not the alternative" ^0
"" ^0

# ---- what the owner got ----

"the year" ^0
"  earned : " + str(project_return) ^0
"  could have earned : " + str(alternative_return) ^0
"  cost of having chosen the project : " + str(economic_profit) ^0
"  is the five percent wrong : no; it is exact" ^0
"  is a positive return a success : only against nothing," ^0
"    and the capital had somewhere else to be" ^0
"" ^0

# ---- null control ----

# The same project judged by economic profit: return minus the return of the
# best forgone alternative.
5000 => nc_accounting_profit
project_return - alternative_return => nc_economic_profit
1 => nc_project_flagged_as_a_loss_by_economic_profit

"null control - judge against the best alternative" ^0
"  accounting profit : " + str(nc_accounting_profit) ^0
"  economic profit : " + str(nc_economic_profit) ^0
"  project flagged as a loss : " + str(nc_project_flagged_as_a_loss_by_economic_profit) ^0
"  no gain and no capital changed; zero stopped standing in" ^0
"  for the alternative" ^0
"" ^0

# ---- the rule ----

"what a positive realised return guarantees" ^0
"  the capital came back with more than it left with :" ^0
"    exactly, real capital, honest gain" ^0
"  the capital was well used : not addressed; the best" ^0
"    alternative paid " + str(alternative_return) + ", so the " + str(project_return) + " earned is " + str(economic_profit) + " against" ^0
"    it - " + str(shortfall_per_myriad_of_the_alternative) + " per ten thousand of what the capital could have made" ^0
"" ^0

"the cost of a choice is the best choice it excluded; a return measured against" ^0
"nothing is measured against a baseline no one was offered, and the number" ^0
"that makes it a success is the one thing that was never on the table" ^0
"" ^0

"It measures a real " + str(project_return_percent) + " percent, " + str(project_return) + ", on real capital - positive. But the" ^0
"best alternative at equal risk paid " + str(alternative_return_percent) + " percent, " + str(alternative_return) + ", so the project's" ^0
"economic profit is " + str(economic_profit) + ", " + str(shortfall_per_myriad_of_the_alternative) + " per ten thousand short of the alternative, a" ^0
"success only against zero, until the return is judged against the best forgone." ^0

capital = 100000
project_return_percent = 5
alternative_return_percent = 8
project_return = int(capital * project_return_percent / 100)
alternative_return = int(capital * alternative_return_percent / 100)
economic_profit = project_return - alternative_return
percentage_points_forgone = alternative_return_percent - project_return_percent
alternative_return_per_myriad_of_capital = int(alternative_return * 10000 / capital)
shortfall_per_myriad_of_the_alternative = int(economic_profit * 10000 / alternative_return)
print("capital                         : " + str(capital))
print("project return                  : " + str(project_return_percent) + " percent, " + str(project_return))
print("best alternative, equal risk    : " + str(alternative_return_percent) + " percent, " + str(alternative_return))
print("")
print("accounting profit               : " + str(project_return) + ", positive")
print("economic profit                 : " + str(economic_profit) + ", negative")
print("percentage points forgone       : " + str(percentage_points_forgone))
print("shortfall vs the alternative    : " + str(shortfall_per_myriad_of_the_alternative) + " per ten thousand")
print("")
print("the return report")
print("  capital : the real amount committed")
print("  return : the honest realised gain, " + str(project_return))
print("  sign : positive")
print("  intent : the capital was well used")
print("  gains misstated : 0")
print("  verdict : FIVE PERCENT, A SUCCESS")
print("")
print("  measuring the real realised gain over the real capital is")
print("  the part done right here, and it is why " + str(project_return) + " is exactly")
print("  what the project earned")
print("")
print("opportunity cost")
print("  what using capital here costs : not using it elsewhere")
print("  the best elsewhere at equal risk : " + str(alternative_return_percent) + " percent, " + str(alternative_return))
print("  so the true cost of the project : " + str(alternative_return) + ", the forgone return")
print("  what the project earned against that cost : " + str(economic_profit))
print("  a positive return : is positive against zero, and zero")
print("    was not the alternative")
print("")
print("the year")
print("  earned : " + str(project_return))
print("  could have earned : " + str(alternative_return))
print("  cost of having chosen the project : " + str(economic_profit))
print("  is the five percent wrong : no; it is exact")
print("  is a positive return a success : only against nothing,")
print("    and the capital had somewhere else to be")
print("")
nc_accounting_profit = 5000
nc_economic_profit = project_return - alternative_return
nc_project_flagged_as_a_loss_by_economic_profit = 1
print("null control - judge against the best alternative")
print("  accounting profit : " + str(nc_accounting_profit))
print("  economic profit : " + str(nc_economic_profit))
print("  project flagged as a loss : " + str(nc_project_flagged_as_a_loss_by_economic_profit))
print("  no gain and no capital changed; zero stopped standing in")
print("  for the alternative")
print("")
print("what a positive realised return guarantees")
print("  the capital came back with more than it left with :")
print("    exactly, real capital, honest gain")
print("  the capital was well used : not addressed; the best")
print("    alternative paid " + str(alternative_return) + ", so the " + str(project_return) + " earned is " + str(economic_profit) + " against")
print("    it - " + str(shortfall_per_myriad_of_the_alternative) + " per ten thousand of what the capital could have made")
print("")
print("the cost of a choice is the best choice it excluded; a return measured against")
print("nothing is measured against a baseline no one was offered, and the number")
print("that makes it a success is the one thing that was never on the table")
print("")
print("It measures a real " + str(project_return_percent) + " percent, " + str(project_return) + ", on real capital - positive. But the")
print("best alternative at equal risk paid " + str(alternative_return_percent) + " percent, " + str(alternative_return) + ", so the project's")
print("economic profit is " + str(economic_profit) + ", " + str(shortfall_per_myriad_of_the_alternative) + " per ten thousand short of the alternative, a")
print("success only against zero, until the return is judged against the best forgone.")

capital                         : 100000
project return                  : 5 percent, 5000
best alternative, equal risk    : 8 percent, 8000

accounting profit               : 5000, positive
economic profit                 : -3000, negative
percentage points forgone       : 3
shortfall vs the alternative    : -3750 per ten thousand

the return report
  capital : the real amount committed
  return : the honest realised gain, 5000
  sign : positive
  intent : the capital was well used
  gains misstated : 0
  verdict : FIVE PERCENT, A SUCCESS

  measuring the real realised gain over the real capital is
  the part done right here, and it is why 5000 is exactly
  what the project earned

opportunity cost
  what using capital here costs : not using it elsewhere
  the best elsewhere at equal risk : 8 percent, 8000
  so the true cost of the project : 8000, the forgone return
  what the project earned against that cost : -3000
  a positive return : is positive against zero, and zero
    was not the alternative

the year
  earned : 5000
  could have earned : 8000
  cost of having chosen the project : -3000
  is the five percent wrong : no; it is exact
  is a positive return a success : only against nothing,
    and the capital had somewhere else to be

null control - judge against the best alternative
  accounting profit : 5000
  economic profit : -3000
  project flagged as a loss : 1
  no gain and no capital changed; zero stopped standing in
  for the alternative

what a positive realised return guarantees
  the capital came back with more than it left with :
    exactly, real capital, honest gain
  the capital was well used : not addressed; the best
    alternative paid 8000, so the 5000 earned is -3000 against
    it - -3750 per ten thousand of what the capital could have made

the cost of a choice is the best choice it excluded; a return measured against
nothing is measured against a baseline no one was offered, and the number
that makes it a success is the one thing that was never on the table

It measures a real 5 percent, 5000, on real capital - positive. But the
best alternative at equal risk paid 8 percent, 8000, so the project's
economic profit is -3000, -3750 per ten thousand short of the alternative, a
success only against zero, until the return is judged against the best forgone.

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