Special Problems in Time Value of Money Methods (Slides in Spanish)

6 Pages Posted: 26 Mar 2006

See all articles by Ignacio Velez-Pareja

Ignacio Velez-Pareja

Grupo Consultor CAV Capital Advisory & Valuation

Date Written: March 17, 2006

Abstract

This is a course material (slides in pdf format) from the book Investment Decision Making. For Firm and Project Valuation. The book is originally in Spanish and is untitled as Decisiones de inversión. Para la valoración financiera de proyectos y empresas.

In this chapter 4 we study some special problems that we find when using the methods studied in chapter 3. We introduce the idea of non constant discount rates, a method to solve the discrepancy among the methods studied in chapter 3. This method solves the problem of the inconsistency that sometimes is present when we use the NPV and the IRR.

Keywords: Non constant discount rates, inequal time period, contradictions between NPV, IRR and R B/C

JEL Classification: G31

Suggested Citation

Velez-Pareja, Ignacio, Special Problems in Time Value of Money Methods (Slides in Spanish) (March 17, 2006). Available at SSRN: https://ssrn.com/abstract=891965 or http://dx.doi.org/10.2139/ssrn.891965

Ignacio Velez-Pareja (Contact Author)

Grupo Consultor CAV Capital Advisory & Valuation ( email )

Ave Miramar # 18-93 Apt 6A
Cartagena
Colombia
+573112333074 (Phone)

HOME PAGE: http://cashflow88.com/decisiones/decisiones.html

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