Uses, Abuses, and Alternatives to the Net-Present-Value Rule
- Financial Puzzles. Myers, Stewart C. // Journal of Applied Finance;Fall/Winter2007, Vol. 17 Issue 2, p131
The article presents a quiz about capital investments.
- The Global NPV Model. Bowman, Robert G. // Australian Journal of Management (University of New South Wales);Dec93, Vol. 18 Issue 2, p225
Proposes a method for globalizing the net present value (NPV) model. Limitations of the traditional NPV model; Mathematical expression of NPV; Incorporation of cash flows in all the various relevant currencies into one model.
- What is Net Present Value? // National Hog Farmer;1/15/2009, Vol. 54 Issue 1, p24
The article provides information on the relevance of the Net Present Value (NVP) analysis to several hog raisers in the U.S. According to the article, NVP analysis is a process of acquiring the current investment and figuring the possible net income. In addition, it can be very useful to the hog...
- Investment Commentary. Marosi, James // Grand Rapids Business Journal;3/10/2003, Vol. 21 Issue 10, p29
Presents information on how to determine the net worth when making an investment plan. Information on how to make an inventory of assets and liabilities; Importance of a net worth statement; Other recommendations when making an investment plan.
- Real Option Value Rule Provides New Strategy for Capital Management. Parthasarathy, V. R. (Perry); Cenatempo, Dan // Pulp & Paper;Aug2001, Vol. 75 Issue 8, p42
Deals with the application of net present value (NPV) incorporated with real option value (ROV) in the capital investment decisions of paper and pulp companies. Limitations of the NPV rule; Advantages of ROV application; Managerial recommendations.
- NPV. // International Dictionary of Finance, 4th Edition;2003, p192
The full form of the acronym NPV is presented. It stands for Net Present Value. It is also related to discounted cash flow.
- Comment on 'The Weighted Average Cost of Capital as a Cutoff Rate' Ben-Horim, Moshe // Financial Management (1972);Summer79, Vol. 8 Issue 2, p18
This article examines the difference between the net present value of an investment project using the classical textbook weighted average cost of capital. The article will show that the effect on calculated net present value of projects is different from what the authors Fred Arditti and Haim...
- Project Termination Announcements and the Market Value of the Firm. Statman, Meir; Sepe, James F. // FM: The Journal of the Financial Management Association;Winter89, Vol. 18 Issue 4, p74
This article examines the effects of project abandonment on the market value of the firm. Termination is one form of abandonment; the other form is sell-off. In a termination the project's assets remain within the firm, while they are sold in a sell-off. According to the normative hypothesis,...
- Blue Line Management: What Value Creation Really Means. Kaiser, Kevin; Young, S. David // INSEAD Working Papers Collection;2009, Issue 37, preceding p2
The article explains the concept of value maximization in business. It notes that to achieve value creation, there is a need for a firm to invest in projects where the expected return of value of cash compensates more than the cash going out, the difference of which is called net present value...