Showing 1 - 10 of 142
This paper deals with the use of the CAPM for capital budgeting purposes. Four different measures are deductively drawn from this model: the disequilibrium Net Present Value, the equilibrium Net Present Value, the disequilibrium Net Future Value, the equilibrium Net Future Value. While all of...
Persistent link: https://www.econbiz.de/10005055505
average accounting rate generates a decision rule which is logically equivalent to the NPV rule for both accept …
Persistent link: https://www.econbiz.de/10008509400
The internal rate of return (IRR) is often used by managers and practitioners for investment decisions. Unfortunately, it has serious flaws: (i) multiple real-valued IRRs may arise, (ii) complex-valued IRRs may arise, (iii) the IRR is, in general, incompatible with the net present value (NPV) in...
Persistent link: https://www.econbiz.de/10008594387
average accounting rate generates a decision rule which is logically equivalent to the NPV rule for both accept …
Persistent link: https://www.econbiz.de/10010762964
) CAPM capital budgeting decision-making based on disequilibrium NPV is deductively inferred by the Capital Asset Pricing … Model, (ii) the use of the disequilibrium NPV is widespread in finance both as a decision rule and as a valuation tool, (iii …'s (2005) project valuation method, on the basis of which Magni's criticism to NPV is objected, leaves decision makers open to …
Persistent link: https://www.econbiz.de/10012766858
This paper deals with capital budgeting decisions under uncertainty. We present an Aggregate Return On Investment (AROI), obtained as the ratio of total (undiscounted) cash flow to total invested capital and show that it is a genuine rate of return which, compared with the risk-adjusted cost of...
Persistent link: https://www.econbiz.de/10012973932
average accounting rate generates a decision rule which is logically equivalent to the NPV rule for both accept …
Persistent link: https://www.econbiz.de/10013039268
) CAPM capital budgeting decision-making based on disequilibrium NPV is deductively inferred by the Capital Asset Pricing … Model, (ii) the use of the disequilibrium NPV is widespread in finance both as a decision rule and as a valuation tool, (iii …’s (2005) project valuation method, on the basis of which Magni’s criticism to NPV is objected, leaves decision makers open to …
Persistent link: https://www.econbiz.de/10005836868
Chisini mean enables these tools to be used as rational decision criteria. Specifically, we focus on 11 metrics and show that … intuitive notion of mean is the founding basis of investment decision criteria …
Persistent link: https://www.econbiz.de/10012932834
cognitive analysis of the decision-making process implied by the maximization problem. The model may be conveniently rescued if … ‘mixed strategy’, currently in use by many real-life decision makers, opens up terrain to a fruitful cooperation between …
Persistent link: https://www.econbiz.de/10005619621