Combination of survival probabilities of the components in a system. An application to long-term financial valuation
The Net Present Value (NPV) is a well-known method to value an investment project. Nevertheless, this methodology exhibits a serious problem when the used discounting function decreases very rapidly, especially in (very) long-term projects, because the future cash-flows are not significant in the ex...
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| Format: | Article |
| Language: | English |
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Accademia Piceno Aprutina dei Velati
2011-12-01
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| Series: | Ratio Mathematica |
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| Online Access: | http://eiris.it/ojs/index.php/ratiomathematica/article/view/77 |