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Value Creation, Net Present Value, and Economic Profit

Authors: Robert S. Harris;

Value Creation, Net Present Value, and Economic Profit

Abstract

This technical note compares economic-profit (economic-value-added) and net-present-value techniques for evaluating corporate investments and performance. The note shows the relationship between the two approaches and sets out the conditions under which they yield the same conclusions about value creation. It also discusses the differences in their estimation and use and talks about some of the difficulties of application. The note is useful for students who have already been exposed to net-present-value techniques.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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