Discount, definition

In actual fact, however, shareholder value orientation is essentially about management decisions that create fundamental value. Fundamental value, defined as the sum of expected discounted cash flows available to shareholders, is by that definition a long-term concept. In theory, a company could pursue SHV without even caring about its share price (Fig. 2.1). 

The definitions of the terms encountered in discounted cash-flow calculations are taken from the literature.1 3 Discounted cash flow is concerned with the analysis of the value of money as a function of time. The money available at a future date has less value at the present and should be discounted by the interest to present worth (PW). P is the notation for the present sum of money, which should be used in such a manner that it produces a future income more than other forms of investment, irrespective of whether it is used for new equipment or the corrosion mitigation process. Let F be the amount of money available in the future when an investment of P is made. The relation between P and F may be written as ... 

An article by J. Linsley, Return on Investment Discounted and Undiscounted, Chern. Eng., 86(11) 201 (May 21, 1979), suggests that return on investment can be defined as net, after-tax profit plus depreciation divided by capital investment. This definition of return on investment where depreciation cash flow is included as part of the return is not used in this book, instead, this method of handling cash flow is included in the profitability methods reported for discounted-cash-flow Profitability Index and Net Present Worth. 

Income-tax effects can be included properly in all the profitability methods discussed in this chapter by using appropriate definitions of terms, such as those presented in Table 4. The methods of discounted-cash-flow rate of return and present worth are limited to consideration of cash income and cash outgo over the life of the project. Thus, depreciation, as a cost, does not enter directly into the calculations except as it may affect income taxes. 

The definition of net cash flow (NCF) for capital budgeting purposes is after tax cash flows from operations discounted at the present value of the cost of capital.26 In net present value analysis the cost of capital is a pre determined value based on the opportunity cost of capital. The cost of capital is defined as a weighted average cost of capital (WACC) and takes into account the firm s capital structure, the cost of equity and debt capital, and tax rates. The formula for the weighted average cost of capital (WACC) is... 

Dichotomous search, 407 Dimensionless numbers, definitions of 468-469 DIPPR, 117 Direct costs, 210 in capital investmenf 167 Direct production costs, 197-204,210 Discounf definition of, 226 Discount factors definition of 223/i 236-237, 303 tables of 219, 234-235, 240-246... 

Here two C fullerene structures are r ard l as distinct if they have different Huckel theory resonance enei es and/or HOMO-LUMO energy separations. This definition discounts the fact that identical resonance energies and HOMO-LUMO energy separations might conceivably be obtained for two different C fullerene molecular graphs. 

The usual effect of increasing the acid concentration is reported to be an increase in the (due to increased amounts of the extractable MA3 in the aqueous phase) followed by a decrease in the (due to formation of the extractant-HNC adduct), resulting in a maximum extraction at an acid concentration between 2 and 6 M. However, one study has noted an increase in americium extraction at nitric acid concentrations from 12 to 16 M. These data are not consistent with the usual view of americium distribution dependence on nitric acid and nitrate concentration, and the authors hypothesize that a TBP HN03 adduct, which is a stronger extractant for americium than TBP alone, is formed above 8 M HNO3 and an organic-phase complex of Am(N03)3 (TBP mHNC ) is formed rather than Am(N03)3 nTBP (26). While one may not absolutely discount this possibility, additional factors such as the extraction of HAm(N03) and deviations from ideal activities in such concentrated acid solutions should definitely be considered. 

In an economic evaluation of a project, it is often necessary to evaluate the present value of funds that will be received at some definite time in the future. The present value (PV) of a future amount can be considered as the present principal at a given rate and compounded to give the actual amount received at a future date. The relationship between the indicated future amount and the present value is determined by a discount factor. Discounting evaluates each year s flow on an equal basis. It does this by means of the discount, or present value factor, and the reciprocal of the compound interest factor (1 -(- i)" with... 

In some cases, the information obtained from an inspection may lead the Local Authority to the conclusion that, whilst the land does not appear to be Contaminated Land on the basis of that information assessed on the balance of probabilities, it is still possible that the land is Contaminated Land. This might occur, for example, where the mean concentration of a contaminant in soil samples lies just below an appropriate guideline value for that contaminant. In cases of this kind, the Local Authority will need to consider whether to carry out further inspections or pursue other lines of enquiry to enable it either to discount the possibility that the land is Contaminated Land, or to conclude that the land does appear to be Contaminated Land. In the absence of any such further inspection or enquiry, the local authority will need to proceed to make its determination on the basis that it cannot be satisfied, on the balance of probabilities, that the land falls within the statutory definition of Contaminated Land. ... 

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