More on the Discounting of Residual Income Streams |
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| Authors: | A W STARK |
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| Institution: | A. W. Stark;is an Assistant Professor of Accounting, University of Maryland at College Park. |
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| Abstract: | The purpose of this paper is to take the conclusions reached by Peasnell (1981, 1982) and Kay (1976) and show that the use of discounted residual incomes for project evaluation purposes requires the prior appraisal on a cash flow basis. The use of residual income at the investment planning and subsequently at the accounting stages is also evaluated. |
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| Keywords: | Project evaluation Discounted cash flow Financial planning |
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