Open AccessA comparison of economic decision making using net present value analysis versus present value ratio combined with a minimum hrdle rate
Author(s) -
R.E.D. Woolsey,
Carl Lienert
Publication year - 2003
Publication title -
orion/orion
Language(s) - English
Resource type - Journals
eISSN - 2224-0004
pISSN - 0259-191X
DOI - 10.5784/1-1-514
Subject(s) - value (mathematics) , net present value , statistics , econometrics , economics , computer science , mathematics , microeconomics , production (economics)
The authors will show that using present value ratio combined with a minimum hurdle rate for economic decision making can lead to erroneous economic conclusions. Two examples are presented