Criteria for Corporate Investment Decisions: Comparison of Cash Flow and Accounting Based Approaches
Document Type
Article
Department
Economics, Finance and Quantitative Analysis
Publication Date
9-1-2017
Abstract
Cash flow based and accounting based criteria for corporate investment decisions are examined and compared. Even though one approach uses cash flows and the other approach uses accounting numbers, the values of the metrics produced, net present value and market value added, are shown to be identical. Use of net present value and market value added produce the same corporate investment decisions.
Journal
International Research Journal of Applied Finance
Journal ISSN
2229 – 6891
Volume
8
Issue
9
First Page
553
Last Page
560
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