search query: @author Djebbar, J.-F. / total: 1
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| Author: | Djebbar, J.-F. |
| Title: | Zur Marktzinsmethode in der Investionsrechnung |
| Journal: | Zeitschrift für Betriebswirtschaft
1996 : VOL. 66:3, p. 353-370 |
| Index terms: | INVESTMENT APPRAISAL RATE OF RETURN DECISION ANALYSIS DECISION MODELS |
| Language: | ger |
| Abstract: | In 1992, Rolfes presented the market rate method as a new model for investment appraisal. Since then the question is discussed very controversially in various articles whether the method can be recommended for decision support. Here the state of discussion is summarized and complemented. In the first instance the assumptions of the model are represented. Afterwards the defects of the model are shown by confrontation with the decision situation in reality. The result is that complexity is reduced so drastically that Rolfes model cannot be applied in most cases. The crucial weaknesses are: The assumption of a perfect capital market, the missing consideration of taxes and of risk/uncertainty aspects. On the other hand the model clearly has a number of advantages, above all the appraisal without an assumption of how suprlusses are spent. |
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