Literature and textbooks on capital budgeting endorse Net Present Value (NPV) and generally treat accounting rates of return as not being reliable tools. This paper shows that accounting numbers can be reconciled with NPV and fruitfully employed in real-life applications. Focusing on project...

Purpose – In investment decision making, the net present value (NPV) rule is often used alongside the well‐known capital asset pricing model (CAPM). In particular, the use of disequilibrium NPV is endorsed in corporate finance for both valuation and decision. The purpose of this paper is to...

Purpose – The purpose of the paper is to focus on the rating, ranking and valuing of firms. Design/methodology/approach – Fuzzy logic and expert systems are used in order to provide a score for the firm(s) under consideration, representing the firm value‐creating power. Findings – The...