90. Discounted Cash Flow Methods

  1. Gavriel Salvendy Ph.D. professor founding editor founding chair member scientist Honorary Doctrate Fellow
  1. Raymond P. Lutz Professor

Published Online: 5 DEC 2007

DOI: 10.1002/9780470172339.ch90

Handbook of Industrial Engineering: Technology and Operations Management, Third Edition

Handbook of Industrial Engineering: Technology and Operations Management, Third Edition

How to Cite

Lutz, R. P. (2001) Discounted Cash Flow Methods, in Handbook of Industrial Engineering: Technology and Operations Management, Third Edition (ed G. Salvendy), John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9780470172339.ch90

Editor Information

  1. School of Industrial Engineering, Purdue University, West Lafayette, Indiana, USA

Author Information

  1. School of Management, The University of Texas at Dallas, Richardson, Texas, USA

Publication History

  1. Published Online: 5 DEC 2007
  2. Published Print: 11 MAY 2001

ISBN Information

Print ISBN: 9780471330578

Online ISBN: 9780470172339

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Keywords:

  • capital expenditure economic life;
  • discounted cash flow methods;
  • continuous compounding cash flow model;
  • benefit–cost method in public sector expenditures;
  • perpetuities and capitalized costs

Summary

This chapter contains sections titled:

  • Defining Alternative Capital Expenditure Proposals

  • Using Interest Factors to find Equivalent Monetary Amounts

  • Comparing Alternatives

  • Nonuniform Service Lives

  • Perpetuities and Capitalized Costs

  • References

  • Additional Reading

  • Appendix: Interest Tables: Selected Rates