notions of disequilibrium NPV and economic profit are not equivalent if the standard NPV+CAPM is employed: NPV-minded agents … are open to framing effects and to arbitrage losses, which imply violations of Modigliani and Miller's Proposition I. The … standard notion of disequilibrium (present) value, deductively derived from the CAPM by several authors, should therefore be …

capital, where the latter depends on the project’s disequilibrium systematic risk. It is shown that the disequilibrium net …) an example showing that CAPM-minded evaluators may incur arbitrage losses …

disequilibrium NPV for decision-making is deductively drawn from the CAPM, its use for both valuation and decision should be rejected. …This paper shows that a decision maker using the CAPM for valuing firms and making decisions may contradict Modigliani … and Miller’s Proposition I, if he adopts the widely-accepted disequilibrium NPV. As a consequence, CAPM-minded agents …

disequilibrium NPV for decision-making is deductively drawn from the CAPM, its use for both valuation and decision should be rejected. …This paper shows that a decision maker using the CAPM for valuing firms and making decisions may contradict Modigliani … and Miller’s Proposition I, if he adopts the widely-accepted disequilibrium NPV. As a consequence, CAPM-minded agents …

arbitrage losses, which imply violations of Modigliani and Miller's Proposition I. The notion of disequilibrium (present) value … notions of disequilibrium NPV and economic prot are not equivalent: NPV-minded agents are open to framing effects and to …

Present Value and the disequilibrium Net Future Value may be used for valuation, given that they are additive. However … from this model: the disequilibrium Net Present Value, the equilibrium Net Present Value, the disequilibrium Net Future …, despite their additivity, the latter are not always reliable metrics, because they do not signal arbitrage opportunities …

improvement; Miller and Modigliani's (1961) investment opportunities approach to valuation; Keynes's (1936) user cost; Drukarczyk …. The results found make this new theoretical approach a good candidate for firm valuation, incentive compensation, capital … budgeting decision-making …

capital, where the latter depends on the project’s disequilibrium systematic risk. It is shown that the disequilibrium net …) an example showing that CAPM-minded evaluators may incur arbitrage losses. …

This paper shows that (i) project valuation via disequilibrium NPV+CAPM contradicts valuation via arbitrage pricing …, (ii) standard CAPM-minded decision makers may fail to profit from arbitrage opportunities, (iii) standard CAPM …-based valuation violates value additivity. As a consequence, the standard use of CAPM for project valuation and decision making should …

improvement; Miller and Modigliani's (1961) investment opportunities approach to valuation; Keynes's (1936) user cost; Drukarczyk …. The results found make this new theoretical approach a good candidate for firm valuation, incentive compensation, capital … budgeting decision-making …