A comparison of economic decision making using net present value analysis versus present value ratio combined with a minimum hrdle rate

R.E.D. Woolsey, C.E. Lienert

Abstract


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.

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DOI: https://doi.org/10.5784/1-1-514

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ISSN 2224-0004 (online); ISSN 0259-191X (print)

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