volume 1, issue 2, P155-249 1995
DOI: 10.1017/s1357321700001082
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C.G. Lewin, S.A. Carne, N.F.C. de Rivaz, R.E.G. Hall, K.J. McKelvey, A.D. Wilkie

Abstract: ABSTRACTThe paper surveys the present state of knowledge about the appraisal and control of capital projects, and identifies the useful contribution which actuaries can make to the process.Relevant theoretical considerations are discussed, including the choice of appropriate discount rates for use by companies when screening proposals. It is recommended that discount rates should be lower than those commonly used. Some practical working methods are summarised and examples are given of how risk analysis can be …

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