The Effects of Inflation and Devaluation on the Assessment of Investment Flows

 

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Autor: Solé Madrigal, Roberto
Format: artículo original
Estat:Versión publicada
Data de publicació:2012
Descripció:Being that today both inflation and the devaluation of the currencies are a constant in all the world’s economies, and the developed economies do not escape this even when the rates are “of a digit”, it is important to take into account their effects over time in a project for its evaluation and impact on metrics traditionally used: Net Present Value (NPV) and Internal Rate of Return (IRR).Refine evaluation techniques in a consistent way with the economic reality, is becoming increasingly imperative, that allows the financial evaluator to clearly interpret them for a correct decision. Inflation or devaluation apparently “low” over the years, may have a “high” impact on cash flows, which could be misleading to an investor to ignore them and thus take a wrong decision.
Pais:Portal de Revistas UCR
Institution:Universidad de Costa Rica
Repositorio:Portal de Revistas UCR
Idioma:Español
OAI Identifier:oai:portal.revistas.ucr.ac.cr:article/7200
Accés en línia:https://revistas.ucr.ac.cr/index.php/reconomicas/article/view/7200
Paraula clau:EVALUACIÓN DE PROYECTOS
VAN
TIR
INFLACIÓN
DEVALUACIÓN
G31
Projects evaluation
NPV
IRR
Inflation
Devaluation