
Value Creation, Net Present Value, and E...
Harris, Robert S.
Value Creation, Net Present Value, and Economic Profit
F-1164 | Published January 10, 1997 | 18 pages. Case
Collection: Darden School of Business
Product Details
This technical note compares economic-profit (economic value added) and net-present-value techniques for evaluating corporate investments and performance. The note shows the relationship between the two approaches and sets out the conditions under which they yield the same conclusions about value creation. It also discusses the differences in their estimation and use and talks about some of the difficulties of application. The note is useful for students who have already been exposed to net-present-value techniques.
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