Production inventory policy under a discounted cash flow

Inventory and pricing strategies for deteriorating items with shortages: A discounted cash flow approach

In this article, we consider an infinite horizon, single product economic order quantity where demand and deterioration rate are continuous and differentiable function of price and time, respectively. In addition, we allow for shortages and completely backlogged. The objective is to find the optimal inventory and pricing strategies maximizing the net present value of total profit over the infin...

Discounted Cash Flow: Accounting for Uncertainty

Valuation is the process of estimating price. The methods used to determine value attempt to model the thought processes of the market and thus estimate price by reference to observed historic data. This can be done using either an explicit model, that models the worth calculation of the most likely bidder, or an implicit model, that that uses historic data suitably adjusted as a short cut to d...

Inventory investment and cash flow

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Toward a Certain Equivalent Discounted Cash Flow Model

Simulation discounted cash flow valuation for internet companies

Discounted cash flow (DCF) is the most accepted approach for company valuation. It is well grounded in theory and practice. However, the DCF approach, which is commonly used for traditional companies valuation, presents a number of serious weaknesses within the Internet companies’ context. One of these weaknesses is tackling the uncertainty that characterize future cash flows of these companies...