Project Evaluation and Accounting Income Forecasts |
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Authors: | DILIP B MADAN |
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Institution: | Dilip;Madan is a Senior Lecturer in the Department of Econometrics, University of Sydney. |
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Abstract: | It is shown that the economically justifiable criterion for project evaluation of maximizing current net market value is equivalent to maximizing the discounted net cash equivalent flow. It is argued that the appropriate income concept for project evaluation is therefore the one used in the system devised by Chambers, 'Continuously Contemporary Accounting'. |
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Keywords: | Project evaluation Forecasting Accounting policies |
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