McClure, Kenneth G.; Girma, Paul Berhanu - In: Zagreb International Review of Economics and Business 7 (2004) Special Conference Issue, pp. 67-82
In this paper we show that, when the firm’s opportunity rate of reinvestment is different from its financing rate, the risk-adjusted discount rate method (RADR) of computing Net Present Value (NPV) leads to the same type of incorrect results that required new methodology for modifying Internal...