Security‐holder cash flows and the valuation of corporate investment projects

Wilbur G. Lewellen, Douglas Emery

Research output: Contribution to journalArticle

Abstract

The difference between adjusted present value and cost‐of‐capital discounting procedures for evaluating corporate real‐asset investment projects is re‐examined. The two approaches are shown to contain different implicit assumptions about the distribution of project cash flows to security‐holders. The consequences thereof for the proper valuation of individual projects in the context of a multiproject investment plan are considered.

Original languageEnglish (US)
Pages (from-to)80-87
Number of pages8
JournalManagerial and Decision Economics
Volume6
Issue number2
DOIs
StatePublished - Jan 1 1985
Externally publishedYes

Fingerprint

Discounting
Investment project
Cash flow
Corporate investment
Present value

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Management Science and Operations Research
  • Management of Technology and Innovation

Cite this

Security‐holder cash flows and the valuation of corporate investment projects. / Lewellen, Wilbur G.; Emery, Douglas.

In: Managerial and Decision Economics, Vol. 6, No. 2, 01.01.1985, p. 80-87.

Research output: Contribution to journalArticle

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