Transforming the Net Present Value for a Comparable One
This study examines the nature of net present value. It defines the economic content of the net present value and mathematically proves that definition is correct. This economic content inducts that the net present values are not comparable. The study systematically eliminates the distortion affect...
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| Format: | Article |
| Language: | English |
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University of Miskolc
2012-07-01
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| Series: | Theory, Methodology, Practice |
| Subjects: | |
| Online Access: | https://ojs.uni-miskolc.hu/index.php/tmp/article/view/1411 |
| _version_ | 1797648451898441728 |
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| author | Mária Illés |
| author_facet | Mária Illés |
| author_sort | Mária Illés |
| collection | DOAJ |
| description |
This study examines the nature of net present value. It defines the economic content of the net present value and mathematically
proves that definition is correct. This economic content inducts that the net present values are not comparable. The study
systematically eliminates the distortion affects. The net present value transforms into a special kind of rate, namely, the modified
difference between the factual and the required rate of return. The ranking list according to this transformed net present value
corresponds to the list according to the internal rate of return. This is a new cognition and a very important correspondence.
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| first_indexed | 2024-03-11T15:31:24Z |
| format | Article |
| id | doaj.art-a33847bc171b4588badc5ca5c52d9e27 |
| institution | Directory Open Access Journal |
| issn | 1589-3413 2415-9883 |
| language | English |
| last_indexed | 2024-03-11T15:31:24Z |
| publishDate | 2012-07-01 |
| publisher | University of Miskolc |
| record_format | Article |
| series | Theory, Methodology, Practice |
| spelling | doaj.art-a33847bc171b4588badc5ca5c52d9e272023-10-27T04:13:49ZengUniversity of MiskolcTheory, Methodology, Practice1589-34132415-98832012-07-01801Transforming the Net Present Value for a Comparable OneMária Illés0University of Miskolc This study examines the nature of net present value. It defines the economic content of the net present value and mathematically proves that definition is correct. This economic content inducts that the net present values are not comparable. The study systematically eliminates the distortion affects. The net present value transforms into a special kind of rate, namely, the modified difference between the factual and the required rate of return. The ranking list according to this transformed net present value corresponds to the list according to the internal rate of return. This is a new cognition and a very important correspondence. https://ojs.uni-miskolc.hu/index.php/tmp/article/view/1411business economicscapital budgeting decisionsnet present valueinternal rate of returnrankingeconomic efficiency |
| spellingShingle | Mária Illés Transforming the Net Present Value for a Comparable One Theory, Methodology, Practice business economics capital budgeting decisions net present value internal rate of return ranking economic efficiency |
| title | Transforming the Net Present Value for a Comparable One |
| title_full | Transforming the Net Present Value for a Comparable One |
| title_fullStr | Transforming the Net Present Value for a Comparable One |
| title_full_unstemmed | Transforming the Net Present Value for a Comparable One |
| title_short | Transforming the Net Present Value for a Comparable One |
| title_sort | transforming the net present value for a comparable one |
| topic | business economics capital budgeting decisions net present value internal rate of return ranking economic efficiency |
| url | https://ojs.uni-miskolc.hu/index.php/tmp/article/view/1411 |
| work_keys_str_mv | AT mariailles transformingthenetpresentvalueforacomparableone |