Problems with Discounted Cash Flow
讨论折现现金流方法中，收益率法与净现值法在判断投资项目是否可行时的一致性，指出当净现值为正时，收益率必然高于最低要求回报率。
When we apply the yield rate method to discover whether an investment is worthwhile, we ascertain the rate of return that discounts the cash flows of a project to zero. If that rate is higher than the required rate of return the project is acceptable. Using net present value (NPV), any project with a positive NPV after applying the required rate of return to the cash flows is deemed acceptable. It follows that, if NPV is positive, the yield rate must be more than the required rate of return to discount the cash flows to zero. Figure 3.1 (p.41) shows the relationship between NPV and yield rate. It shows that if the minimum rate is 6%, NPV is positive at £5.60. The curve on the graph is seen to cut the horizontal axis (zero NPV) at 10%, which is higher than the minimum required rate. Whichever method is used, an 'accept' decision is indicated. Most investment decisions feature independent projects whose viability will be judged according to whether they can meet the required rate of return criteria. Both NPV and yield rate point to the same decision.KeywordsCash FlowInvestment DecisionYield RateRequire RateDiscount Cash FlowThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.