Accession Number : AD0726883

Title :   Stochastic Variations of Commonly Used Discounted Cash Flow Formulae.

Descriptive Note : Technical memo.,

Corporate Author : CASE WESTERN RESERVE UNIV CLEVELAND OHIO DEPT OF OPERATIONS RESEARCH

Personal Author(s) : Reisman,Arnold ; Rao,Arza K.

Report Date : AUG 1970

Pagination or Media Count : 71

Abstract : Standard texts in Engineering Economy, Capital Allocation Theory, Finance, Managerial Economics and/or Economic Analysis develop and list equations for various cases of discounted cash flow analysis. In these tests the independent variables and/or parameters are assumed to be known deterministically. In practice, however, it is often difficult to establish values for these variables with certainty. Yet, it is often possible to establish for such values the distributions and its parameters. This paper lists the stochastic formulations for each of the commonly used equations for various combinations and permutations of distributions. (Author)

Descriptors :   (*ECONOMICS, STOCHASTIC PROCESSES), RANDOM VARIABLES, DISTRIBUTION FUNCTIONS, PROBABILITY DENSITY FUNCTIONS, SERIES(MATHEMATICS), MATHEMATICAL MODELS

Subject Categories : Economics and Cost Analysis
      Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE