Titel
Adjusting Faustmann's Formula for a Dynamic Financial Environment
Verfasser
Erscheinungsjahr
1989
Illustrationen
15 Lit. Ang.
Material
Unselbständiges Werk
Standardsignatur
8398
Datensatznummer
200028766
Quelle
Abstract
The well-known LEV criterion or Faustmann's formula which evolved in the static financial environment of the nineteenth century is adjusted to take account of the changes in the dynamic financial environment of today. A previous incorrect attempt to adjust LEV to take account of price changes is discussed. Net present value for an infinite series of rotations (NPVoo) is reformulated to take account of price changes and a new form of internal rate of return is presented.
