Anomalies in Net Present Value, Returns and Polynomials, and Regret Theory in Decision-Making
Michael C. I. Nwogugu
![Anomalies in Net Present Value, Returns and Polynomials, and Regret Theory in Decision-Making](https://thumbs.readings.com.au/UIetflNaOoT1HQoekIYUINeern4=/0x500/https://readings-v4-production.s3.amazonaws.com/assets/1f0/198/e31/1f0198e31bc187c5f3e62d05cb055b71d8440f6b/978113744697820210514-4-epnwuj.jpg)
Anomalies in Net Present Value, Returns and Polynomials, and Regret Theory in Decision-Making
Michael C. I. Nwogugu
This title is printed to order. This book may have been self-published. If so, we cannot guarantee the quality of the content. In the main most books will have gone through the editing process however some may not. We therefore suggest that you be aware of this before ordering this book. If in doubt check either the author or publisher’s details as we are unable to accept any returns unless they are faulty. Please contact us if you have any questions.
This book explores why Modified Internal Rate of Return (MIRR) and Net Present Value (NPV) are not necessarily accurate or efficient tools for valuation and decision-making. The author specifically addresses the biases and framing effects inherent in the NPV/MIRR/IRR model and in related approaches such as Adjusted Present Value (APV), Net Future Value (NFV), and by extension, Polynomials. In doing so, the book presents new ways of solving higher order polynomials using invariants and homomorphisms and explains why the Fundamental Theorem of Algebra , the Binomial Theorem and the Descartes Sign Rule are unreliable. Chapters also discuss how International Asset Pricing Theory (IAPT) and Intertemporal Capital Asset Pricing Models (ICAPM) can produce inaccurate results in certain circumstances. The conditions under which ICAPM and IAPT may be accurate are described; as well as why those conditions cannot, or are unlikely to, exist. The conditions under which negative interest rates may exist or are justified are also outlined. Moreover, the author explains why traditional Consumption-Savings-Investment-Production models of allocation can be inefficient, and then introduces a new model of allocation that can be applied to individuals, households and companies. Finally, the book explains why the Elasticity of Intertemporal Substitution is a flawed concept and introduces the Marginal Rate of Intertemporal Joint Substitution as a solution.
This item is not currently in-stock. It can be ordered online and is expected to ship in 7-14 days
Our stock data is updated periodically, and availability may change throughout the day for in-demand items. Please call the relevant shop for the most current stock information. Prices are subject to change without notice.
Sign in or become a Readings Member to add this title to a wishlist.