Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/84414
Authors: 
Apreda, Rodolfo
Year of Publication: 
2009
Series/Report no.: 
Serie Documentos de Trabajo, Universidad del CEMA: Área: finanzas 392
Abstract: 
This paper sets forth a pair of distinctive contributions to the subject. In the first place, it provides a unified approach to capital investment decisions, by means of a two-tiered framework of analysis. Such approach consists in working out the net present value of the project by discounting its cash flows with a temporal structure of rates of return adjusted for country and credit risk; this procedure accounts for the first tier. It is for the second tier to bring about both the internal and external rates of return. Afterwards, we broaden the streamlined viewpoint in valuation by introducing the Corporate Governance risk rate. As a byproduct, the paper also attempts to furnish analysts as well graduate students taking core courses on Corporate Finance with a friendly and easier road to valuation.
Subjects: 
investment valuation
net present value
investment projects
internal rate of return
external rate of return
governance risk
cost of capital
JEL: 
G30
G31
G34
Document Type: 
Working Paper

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