1. Benefit-Cost Ratios Versus Net Present Value: Revisited.
- Author
-
Hoskins, C. G.
- Subjects
NET present value ,COST effectiveness ,RATE of return ,INVESTMENTS ,DIVIDEND reinvestment ,CAPITAL investments ,CASH flow ,CASH management - Abstract
This article examines and compares the ranking characteristics of Benefit-Cost Ratios and Net Present Value. The algebraic analysis of the author shows the circumstances under which these evaluation techniques give a contradictory ranking of investment projects and identifies the differing implicity reinvestment assumptions where the validity of these assumptions is examined. There is still dispute concerning which technique is preferable under uncertainty and which under capital rationing according to the author.
- Published
- 1974
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