Decisions about life annuities are an important part of consumer decumulation of retirement assets, yet they are relatively underexplored by marketing researchers studying consumer financial decision making. In this article, the authors propose and estimate a model of individual preferences for life annuity attributes using a choice-based statedpreference survey. Annuities are presented in term...

In this paper we present an efficient methodology for approximating the distribution function of the net present value of a series of cash-flows, when the discounting is presented by a stochastic differential equation as in the Vasicek model and in the Ho-Lee model. Upper and lower bounds in convexity order are obtained. The high accuracy of the method is illustrated for cash-flows for which no...

Trade credit represents a substantial portion of short-term credit for most firms. A trade credit decision is usually limited to a comparison of the effective cost of trade credit with the annual cost of borrowing. If the cost of not taking the cash discount exceeds the firm’s borrowing cost, the decision is to take the cash discount. This article examines traditional trade credit analysis, and...

Most of the empirical work on investment is based on the existence of a relation between investment and the expected present val of marginal profits. Thus, in this paper we compute such a present value series, under various assumptions about demand and technology and examine its relation to investment. We find that variations in this present value series are, surprisingly, due more to variation...

The Resource-constrained Project Scheduling Problem (Rcpsp), in which a schedule must obey the resource constraints and the precedence constraints between pairs of activities, is one of the most studied scheduling problems. An important variation of the problem (RcpspDc) is to find a schedule which maximises the net present value (discounted cash flow), when every activity has a given cash flow...

The applicability of Net Present Value (NPV) in an investment project is becoming more and more popular in the field of engineering economics. The classical NPV methodology involves only the precise and accurate data of the investment project. In the present communication, we give a new mathematical model for NPV which uses the concept of intuitionistic fuzzy set theory. The proposed model is b...

We examine project scheduling with net-present-value objective and exponential activity durations, using a continuous-time Markov decision chain. Based on a judicious partitioning of the state space, we achieve a significant performance improvement compared to the existing algorithms.

We adopt a simple Present Value (PV) methodology to investigate the interaction between interest rates, inflation and taxation on the fundamental value of residential real estate for a rational investor with varying degrees of risk-aversion. This approach allows the calculation of the fair present value of residential real estate from only a small number of macro-economic variables, and avoids ...

We analyze numerical stability of a recursive computation scheme of present value (PV) amd show that the absolute error increases exponentially for positive discount rates. We show that reversing the direction of calculations in the recurrence equation yields a robust PV computation routine.