首页 | 本学科首页   官方微博 | 高级检索  
     检索      


Capital rationing: The general case and a better criterion for ranking
Authors:Hoi T Wong
Institution:(1) Department of Business Administration, Sul Ross State University, 78801 Uvalde, Texas
Abstract:The definition of net present value implies that the reinvestment rate of return on the intermediate cash flows is equal to the risk-adjusted discount rate of the project. However, in many situations, the two rates are different. Therefore, in capital rationing, the ranking of projects based on net present value is incorrect in those situations. Another problem is that financial managers would prefer to use internal rate of return for ranking, although ranking by net present value is theoretically superior. This paper solves both problems by developing a new ranking criterion.
Keywords:
本文献已被 SpringerLink 等数据库收录!
设为首页 | 免责声明 | 关于勤云 | 加入收藏

Copyright©北京勤云科技发展有限公司  京ICP备09084417号