The Cost Decision: A New Discount Approach for Net Cost Projects
This discussion paper proposes a new decision rule for economic investment theory, the Cost Decision, and describes a new discount approach for Net Cost Projects and the Net Present Cost Formula. The paper illustrates the problems faced internationally, at all levels of government, of assessing Net Cost Projects from a finance perspective. The paper discusses the Cost Decision in the controversial context of public-private partnerships and compares the four main alternative approaches to the Cost Decision currently used in practice. The paper is also relevant when analysing Net Cost Projects undertaken by private sector entities and individuals.
|Date of creation:||15 Jun 2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.bus.qut.edu.au/faculty/economics/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lewellen, Wilbur G, 1977. "Some Observations on Risk-Adjusted Discount Rates," Journal of Finance, American Finance Association, vol. 32(4), pages 1331-37, September.
- Mandelker, Gershon N. & Rhee, S. Ghon, 1984. "The Impact of the Degrees of Operating and Financial Leverage on Systematic Risk of Common Stock," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 19(01), pages 45-57, March.
- Lewellen, Wilbur G, 1979. "Reply to Pettway and Celec [Some Observations on Risk-Adjusted Discount Rates]," Journal of Finance, American Finance Association, vol. 34(4), pages 1065-66, September.
- Lev, Baruch, 1974. "On the Association between Operating Leverage and Risk," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 9(04), pages 627-641, September.
- Celec, Stephen E & Pettway, Richard H, 1979. "Some Observations on Risk-Adjusted Discount Rates: A Comment," Journal of Finance, American Finance Association, vol. 34(4), pages 1061-63, September.
When requesting a correction, please mention this item's handle: RePEc:qut:dpaper:199. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angela Fletcher)
If references are entirely missing, you can add them using this form.