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Reversion, Timing Options, and Long-Term Decision-Making

Discounted cash flow analysis is the most common method for evaluation of investment projects, yet practitioners worry about its shortcomings. In particular, there is concern that standard DCF comparisons may introduce bias against long-term investments. Here, we explore a possible source of such bias in the structure of the uncertainty underlying project cash flows, and the way it is incorporated into project discounting.
Year of publication:
1993
Authors: Laughton, David G. ; Jacoby, Henry D.
Published in:
Financial Management. - Financial Management Association - FMA. - Vol. 22.1993, 3
Publisher: Financial Management Association - FMA
Type of publication: Article
Source:
Persistent link: https://www.econbiz.de/10005764972
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