Present values with renewals
Article Abstract:
Present value can be calculated even in cash flow situations where there is a source of unpredictability. A method is presented for calculating present value in a case wherein the source of unpredictability is the presence of periodic renewals that cause the cash flow process to start again after each renewal. This method of present value analysis is illustrated by several examples and is demonstrated to be effective provided an infinite time horizon is assumed.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1992
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Waterfront history is the key to the present and the future
Article Abstract:
Costs in the Australian stevedoring industry average A$200 per twenty-foot-equivalent unit, which means they seemingly are of little consequence. While reducing cargo handling costs by 50% would generate overall cost reductions of only 0.01% to 1.00%, putting in a bid that is 1.00% less can mean the difference between winning or losing a contract. the demand for cost reductions has led the cargo handling industry to take a hardline against unions.
Publication Name: Business Review Weekly
Subject: Business, general
ISSN: 0727-758X
Year: 1998
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Correction constants for present values of seasonal cash flows
Article Abstract:
A seasonal correction constant method measures and adjusts seasonal biases in end-of-year (EOY) present value. It adjusts inputs in cash flow equation on a subannual basis seasonally. The method applied on a capital budgeting problem showed that the net present value is biased when cash expenses and receipts vary seasonally in a level subannual cash flow, consequently, affecting the accept-reject decision of a decision maker.
Publication Name: Decision Sciences
Subject: Business, general
ISSN: 0011-7315
Year: 1997
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