| Article ID: | iaor1991805 |
| Country: | Netherlands |
| Volume: | 18 |
| Issue: | 1 |
| Start Page Number: | 65 |
| End Page Number: | 70 |
| Publication Date: | Oct 1989 |
| Journal: | Engineering Costs and Production Economics |
| Authors: | Estes John H., Moor William C., Rollier Dwayne A. |
This paper develops the mean and variance of present worth for lump-sum and series cash flows. The series cash flow model assumes a finite time horizon. The use of these calculations will enable both a realistic computation of expected present worth and also allow the analyst to calculate a variance expression for use in probabilistic investment analyses.