Defects and Countermeasures of Net Present Value Method in Economical Evaluation of Waterway Projects
Xie Yao-feng
Abstract
Xie Yao-feng
Abstract
Proceeding from the basic hypothesis,some questions of the net present value method existing in the economical evaluation of the waterway projects are analyzed,and the conclusion that the net present value method can't forecast the indeterminacy value is pointed out.The real option is advanced to ameliorate the net present value method,serving as a completely new way for investment decision of water transportation projects.
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Proceeding from the basic hypothesis,some questions of the net present value method existing in the economical evaluation of the waterway projects are analyzed,and the conclusion that the net present value method can't forecast the indeterminacy value is pointed out.The real option is advanced to ameliorate the net present value method,serving as a completely new way for investment decision of water transportation projects.
Key concepts: Net present value, Value (mathematics), Investment (military), Present value, Indeterminacy (philosophy), Net (polyhedron), Operations research, Computer science