Freeman, Mark C. - In: Economics: The Open-Access, Open-Assessment E-Journal 4 (2010) 2010-13, pp. 1-21
In this paper the author proves that the Expected Net Future Value (ENFV) criterion can lead a risk neutral social planner to reject projects that increase expected utility. By contrast, the Expected Net Present Value (ENPV) rule correctly identifies the economic value of the project. While the...