Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 1, 2014 erstellt
Description:
A method for molding a corporate investment program in the context of limited information on future reinvestment opportunities has been presented. It has been demonstrated that well-known Dean's method may not provide any ultimate result regarding an optimal program due to the circularity problem known in financial literature. The total profitability index (TP), the total modified profitability index (TMPI) and the total equivalent annuity profitability index (TEAAPI) suggested in this paper make it possible to solve the circularity problem using Dean's solution already in the first instance of its iteration. In addition, these indexes come laden with information supplementary for an investor concerning potential more profitable investment trains and most efficient alternatives of maximum diversification of investment risks