ABSTRACT
In an investment analysis, one starts with a project’s expected cash flows and evaluates the profitability of the project by comparing it with a given alternative. Consider project Alfa where you invest €10 million and receive €2 million at the end of each year for the next three years, and €12 million at the end of the fourth year. This can be formulated in the following way, with the amounts representing millions of euros: https://www.w3.org/1998/Math/MathML"> ( − 10 , 2 , 2 , 2 , 12 ) https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9780203362884/cf941c9b-9837-43d9-aea4-9002e737af57/content/math_31_B.tif" xmlns:xlink="https://www.w3.org/1999/xlink"/>
