DISCOUNTED CASH FLOW WITH EXPLICIT REINVESTMENT RATES: TUTORIAL AND EXTENSION Article

McDaniel, WR, McCarty, DE, Jessell, KA. (1988). DISCOUNTED CASH FLOW WITH EXPLICIT REINVESTMENT RATES: TUTORIAL AND EXTENSION . FINANCIAL REVIEW, 23(3), 369-385. 10.1111/j.1540-6288.1988.tb01276.x

cited authors

  • McDaniel, WR; McCarty, DE; Jessell, KA

authors

abstract

  • This article discusses and critiques yield‐based capital budgeting techniques that have arisen over the past 30 years. Some have theoretical inconsistencies, while some work well only for certain kinds of problems. A new method, the marginal return on invested capital, is presented. The method's application is general; it gives accept/reject signals and rankings consistent with the net present value method. Copyright © 1988, Wiley Blackwell. All rights reserved

publication date

  • January 1, 1988

published in

Digital Object Identifier (DOI)

start page

  • 369

end page

  • 385

volume

  • 23

issue

  • 3