Accession Number:

ADA222418

Title:

Capital Budgeting Decisions with Post-Audit Information

Descriptive Note:

Final rept.

Corporate Author:

AUBURN UNIV AL

Personal Author(s):

Report Date:

1990-06-08

Pagination or Media Count:

259.0

Abstract:

This dissertation investigates using post-audit information in capital budgeting decisions. The effects of cash flow realizations, incorporated by Bayes theorem, on cash flow estimates represented as probability functions are examined. This research develops modeling techniques, and concepts that incorporate the users strength of belief in his input information and in the available sample information. These concepts are then applied to case studies of actual decision problems. As the revision procedures generate the uncertainty, resolution for the project cash flows, it is helpful to have a graphic illustration. This research develops Cash Flow Control Charts as a management tool. These charts are similar to statistical quality control charts, but incorporate Bayesian revision. The methods lead to improved decision making. Keywords Decision science Economic analysis Bayesian analysis Replacement problem. Theses.

Subject Categories:

  • Administration and Management
  • Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE