Stochastic Variations of Commonly Used Discounted Cash Flow Formulae.
Abstract
Standard texts in Engineering Economy, Capital Allocation Theory, Finance, Managerial Economics and/or Economic Analysis develop and list equations for various cases of discounted cash flow analysis. In these tests the independent variables and/or parameters are assumed to be known deterministically. In practice, however, it is often difficult to establish values for these variables with certainty. Yet, it is often possible to establish for such values the distributions and its parameters. This paper lists the stochastic formulations for each of the commonly used equations for various combinations and permutations of distributions. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 01, 1970
- Accession Number
- AD0726883
Entities
People
- Arnold Reisman
- Arza K. Rao
Organizations
- Case Western Reserve University