Talk:Net present value

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Revision as of 02:57, 26 February 2008 by imported>Nick Gardner
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 Definition The sum of the discounted values of a sequence of cash flows. [d] [e]
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I very much hope that in editing this article I have not harmed an eduzendium project. If I have, I apologise and I can only take comfort in the fact that all my changes can be reversed if necessary. However, I have run into the need for a link to an article on this subject in an article that I am trying to draft on Financial economics and for that purpose, I have introduced a slight extension to the maths to cover net present expected value.

I have transferred all of the maths onto the "Tutorials" subpage. That is in accordance with the policy that has been adopted for economics articles on the grounds that many educated layman are fazed by algebra, including those who can readily understand the same proposition phrased as verbal logic. I have introduced some rephrasing of the existing text, mainly for the same reason, but I have refrained from developing the subject further. I suggest that there is room for further development, for example in demonstrating the superiority of the NPV criterion over the discounted cash flow criterion, and in giving some numerical examples of NPEV calculations.

If it is decided to reverse my changes, I should be grateful for an opportunity to transfer some of the revised drafting to the tutorials subpage of the financial economics article before it is deleted from this article.

Nick Gardner 11:38, 25 February 2008 (CST)

  • I think Eduzendium articles are supposed to say so if editing is not allowed, so your edits should be ok.
  • If the consensus of the economics workgroup (especially economics editors) is to banish math to tutorials pages, that fact should presumably be documented on the workgroup homepage. (Aside: While I agree that the beginning of a page should be non-technical, banishing all equations to a subpage seems a bit extreme to me. The approval standards indicate that the target audience level is "average university student". The average university student knows math up through calculus, so a little algebra shouldn't be a problem.)
Warren Schudy 21:37, 25 February 2008 (CST)
Sad to say, some of the skills that I acquired as an undergraduate have faded with disuse over the years and seem now to be beyond recall. So I think it would be a pity to be over-exclusive in deciding which readers to serve. :Nick Gardner 01:57, 26 February 2008 (CST)