notions of disequilibrium NPV and economic profit are not equivalent if the standard NPV+CAPM is employed: NPV-minded agents … are open to framing effects and to arbitrage losses, which imply violations of Modigliani and Miller's Proposition I. The … standard notion of disequilibrium (present) value, deductively derived from the CAPM by several authors, should therefore be …

capital, where the latter depends on the project’s disequilibrium systematic risk. It is shown that the disequilibrium net …) an example showing that CAPM-minded evaluators may incur arbitrage losses …

disequilibrium values, is at odds with arbitrage theory, and that the corresponding CAPM-based NPV rule is meaningless even in the …, leaves decision makers open to arbitrage losses, because it is an (admittedly interesting) reframing of the security market … lineand (as surprising as it might be) the use of the SML for project valuation is incompatible with the no-arbitrage …

disequilibrium NPV for decision-making is deductively drawn from the CAPM, its use for both valuation and decision should be rejected. …This paper shows that a decision maker using the CAPM for valuing firms and making decisions may contradict Modigliani … and Miller’s Proposition I, if he adopts the widely-accepted disequilibrium NPV. As a consequence, CAPM-minded agents …

disequilibrium NPV for decision-making is deductively drawn from the CAPM, its use for both valuation and decision should be rejected. …This paper shows that a decision maker using the CAPM for valuing firms and making decisions may contradict Modigliani … and Miller’s Proposition I, if he adopts the widely-accepted disequilibrium NPV. As a consequence, CAPM-minded agents …

arbitrage losses, which imply violations of Modigliani and Miller's Proposition I. The notion of disequilibrium (present) value … notions of disequilibrium NPV and economic prot are not equivalent: NPV-minded agents are open to framing effects and to …

Present Value and the disequilibrium Net Future Value may be used for valuation, given that they are additive. However … from this model: the disequilibrium Net Present Value, the equilibrium Net Present Value, the disequilibrium Net Future …, despite their additivity, the latter are not always reliable metrics, because they do not signal arbitrage opportunities …

improvement; Miller and Modigliani's (1961) investment opportunities approach to valuation; Keynes's (1936) user cost; Drukarczyk …. The results found make this new theoretical approach a good candidate for firm valuation, incentive compensation, capital … budgeting decision-making …

capital, where the latter depends on the project’s disequilibrium systematic risk. It is shown that the disequilibrium net …) an example showing that CAPM-minded evaluators may incur arbitrage losses. …