Lajos Juhász Institute of Corporate Economics Faculty of Economics NET PRESENT VALUE VERSUS INTERNAL RATE OF RETURN University of West Hungary [email protected] ABSTRACT. The economic professional literature which deals with investment decisions can be characterised in general that the net present value shows objective picture for the decision maker while the internal rate of return – not...

Weitzman (1998) showed that when future interest rates are uncertain, using the expected net present value implies a term structure of discount rates that is decreasing to the smallest possible interest rate. On the contrary, using the expected net future value criteria implies an increasing term structure of discount rates up to the largest possible interest rate. We reconcile the two approach...

Maintenance planning and activities have grown dramatically in importance across many industries and are increasingly recognized as drivers of competitiveness if managed appropriately. Correlated with this observation is the proliferation of maintenance optimization techniques in the technical literature. But while all these models deal with the cost of maintenance (as an objective function or ...

Weitzman (1998) showed that when future interest rates are uncertain, using the expected net present value implies a term structure of discount rates that is decreasing to the smallest possible interest rate. On the contrary, using the expected net future value criteria implies an increasing term structure of discount rates up to the largest possible interest rate. We reconcile the two approach...

The major functions of company accounting identified by the IASB and the FASB are (1) reporting on ‘the custody and safekeeping’ of the company’s resources and (2) reporting on ‘their efficient and profitable use’. The joint IASB/FASB project for improving the conceptual framework for financial reporting is directed towards better performance of both functions within the conventional ‘accrual’ ...

QUESTIONS What is the economic value for an individual to invest in physiotherapy undergraduate education in Australia? How is this affected by increased education costs or decreased wages? DESIGN A cost-benefit analysis using a net present value (NPV) approach was conducted and reported in Australian dollars. In relation to physiotherapy education, the NPV represents future earnings as a phy...

Fernandez (2004b) argues that the present value effect of the tax saving on debt cannot be calculated as simply the present value of the tax shields associated with interest. This contradicts standard results in the literature. It implies that, even though the capital market is complete, value-additivity is violated. As a consequence, adjusted present value formulae of a standard sort cannot be...