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- Title
A NOTE ON BIASES IN CAPITAL BUDGETING INTRODUCED BY INFLATION.
- Authors
Van Horne, James C.
- Abstract
The article presents a brief investigation into the nature of a cost-of-capital rate bias within optimal decision modeling with anticipated inflation factors in cash-flow estimates. Details regarding the unintentional assumptions concerning cost of capital rates and future cash flow estimation parameters are highlighted and explicit calculation modeling is provided.
- Subjects
CAPITAL budget; PRICE inflation; CAPITAL costs; CASH flow
- Publication
Journal of Financial & Quantitative Analysis, 1971, Vol 6, Issue 1, p653
- ISSN
0022-1090
- Publication type
Article
- DOI
10.2307/2330135