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.

Let K denote a field and let V denote a vector space over K with finite positive dimension. We consider a pair of linear transformations A : V → V and A∗ : V → V that satisfy the following conditions: (i) each of A,A∗ is diagonalizable; (ii) there exists an ordering {Vi} d i=0 of the eigenspaces of A such that A ∗Vi ⊆ Vi−1+Vi+Vi+1 for 0 ≤ i ≤ d, where V−1 = 0 and Vd+1 = 0; (iii) there exists an...

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...