ON THE EQUIVALENCE OF NET PRESENT VALUE AND MARKET VALUE ADDED AS MEASURES OF A PROJECT'S ECONOMIC WORTH
作者:
JOSEPHC. HARTMAN,
期刊:
The Engineering Economist
(Taylor Available online 2000)
卷期:
Volume 45,
issue 2
页码: 158-165
ISSN:0013-791X
年代: 2000
DOI:10.1080/00137910008967543
出版商: Taylor & Francis Group
数据来源: Taylor
摘要:
The metric Economic Value Added, or EVA, has recently become quite popular for analyzing company balance sheets, determining executive compensation packages and even project selection. The analysis entails comparing net after-tax operating profit against the allocated cost of capital for a given period. This paper shows, in general, that Market Value Added (MVA), which is the present value of a series of EVA values, is economically equivalent to the traditional NPV measure of worth for evaluating an after-tax cash flow profile of a project if the cost of capital is used for discounting. Additionally, insight is provided into the rationale behind EVA analysis through an interpretation of its capital and income allocation procedure for investment projects.
点击下载:
PDF (277KB)
返 回