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- Title
Capital Budgeting and Discounted Cash Equivalents: Some Clarifying Comments.
- Authors
Peasnell, K. V.
- Abstract
The article examines the processes involved in capital budgeting and discounted cash equivalents. It is now generally accepted in the finance literature that the most conceptually satisfactory project selection criteria are based on some measure of the discounted present value of net cash flows expected to be generated by the project in future periods. Cash equivalents are the proceeds which the firm could expect to receive if the project were to be abandoned prior to the planned terminal date. A company would be riskless because of its asset-backing its returns are almost completely independent of the returns on the market portfolio.
- Subjects
CASH &; cash equivalents; CAPITAL budget; FINANCE literature; CASH flow; ASSET backed financing; CORPORATE finance; INVESTMENTS
- Publication
Abacus, 1979, Vol 15, Issue 2, p145
- ISSN
0001-3072
- Publication type
Article
- DOI
10.1111/j.1467-6281.1979.tb00081.x