Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/85999
Authors: 
Akalu, Mehari Mekonnen
Turner, Rodney
Year of Publication: 
2002
Series/Report no.: 
Tinbergen Institute Discussion Paper 02-083/1
Abstract: 
One of the debates in the capital budgeting model selection is between the free cash flow and DCF methods. In this paper an attempt is made to compare SVA against NPV model based on Monte Carlo simulations. Accordingly, NPV is found less sensitive to value driver variations and has got higher forecast errors as compared to SVA model.
Subjects: 
Capital budgeting
Investment appraisal
DCF methods
Project Analysis
Shareholder Value Analysis
Value Management Techniques.
JEL: 
G30
G31
L6
L8
L9
M10
O22
O32
Document Type: 
Working Paper

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