Inflation and the Capital Budgeting Process.

Abstract

This report performs first a theoretical review of why and how inflation needs to be considered in the capital budgeting process. The Net Present Value (NPV) capital budgeting equation model is modified extensively to account for the effects of inflation. Secondly, a limited review of the capital budgeting techniques of 3 major retailers is performed to determine the use of inflation adjusted techniques in actual practice. The report concludes with a comparison of the theoretical and empirical ways of dealing with the effects of inflation in the capital budgeting process. (Author).

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Document Details

Document Type
Technical Report
Publication Date
Apr 01, 1985
Accession Number
ADA156131

Entities

People

  • R. Canny

Organizations

  • Air Command and Staff College

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Accounting
  • Air Force
  • Business Administration
  • Capital Investments
  • Commerce
  • Costs
  • Equations
  • Finance
  • Investments
  • Literature Surveys
  • Money
  • Price Index
  • Procurement
  • Recognition
  • Retail
  • Risk Factors
  • United States

Readers

  • Life Cycle Cost Analysis
  • Regression Analysis.