Anomalies in Net Present Value, Returns and Polynomials, and Regret Theory in Decision-Making

• Main Author: Nwogugu, Michael C. I. (Author)
• Corporate Author: SpringerLink (Online service)
• Format: Electronic eBook
• Language: English
• Published: London : Palgrave Macmillan UK : Imprint: Palgrave Macmillan, 2016.
• Subjects: Finance.; Business enterprises > Finance.; Corporations > Finance.; Investment banking.; Securities.; Economics, Mathematical.; Applied mathematics.; Engineering mathematics.; Investments and Securities.; Quantitative Finance.; Corporate Finance.; Business Finance.; Appl.Mathematics/Computational Methods of Engineering.

This book explores why Internal Rate of Return (IRR) and Net Present Value (NPV) are not necessarily accurate or efficient tools for valuation and decision-making. The author specifically addresses the discounting biases and framing effects inherent in the NPV/MIRR/IRR model and in related approache...