Hostname: page-component-8448b6f56d-sxzjt Total loading time: 0 Render date: 2024-04-24T07:39:55.629Z Has data issue: false hasContentIssue false

The Discount Rate Problem in Capital Rationing Situations: Reply

Published online by Cambridge University Press:  19 October 2009

Extract

In our earlier note, we drew attention to the problem of interdependency between the opportunity cost used as a discount rate in determining the net present values of the objective function and the optimal solution of a linear program. In expanding on our article, Lockett and Tompkins (L and T) rightly point to the need for an appropriate definition of opportunity costs.

Type
Communications
Copyright
Copyright © School of Business Administration, University of Washington 1970

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)