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Comments on Longmore's Article

 

作者: MiroslawM. Hajdasiński,  

 

期刊: The Engineering Economist  (Taylor Available online 1991)
卷期: Volume 36, issue 2  

页码: 155-163

 

ISSN:0013-791X

 

年代: 1991

 

DOI:10.1080/00137919108903039

 

出版商: Taylor & Francis Group

 

数据来源: Taylor

 

摘要:

In his recent paper [3], Dean R. Longmore develops a new concept of the Payback Period project evaluation criterion, the so-called Time-Adjusted Payback Period, which is supposed to beNPV-compatible and is, therefore, expected by the author to address the needs of practitioners. In this paper, it is indicated that the formulation of the proposed criterion is mathematically incomplete, and its complete version is presented. It is also shown, using numerical examples, that the criterion devised in [3] does not reflect the true content of its name and constitutes, instead, an artificial profitability index. Although this index, in its complete version, is indeedNPV-compatible, it does not, however, offer any advantages over theNPV.

 

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