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

Wilbur G. Lewellen, Douglas R. Emery

Research output: Contribution to journalArticlepeer-review


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
Issue number2
StatePublished - Jun 1985
Externally publishedYes

ASJC Scopus subject areas

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


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