<?xml version="1.0" encoding="UTF-8"?><xml><records><record><source-app name="Biblio" version="6.x">Drupal-Biblio</source-app><ref-type>17</ref-type><contributors><authors><author><style face="normal" font="default" size="100%">Huisman, Kuno</style></author><author><style face="normal" font="default" size="100%">Kort, Peter</style></author><author><style face="normal" font="default" size="100%">Thijssen, Jacco</style></author></authors></contributors><titles><title><style face="normal" font="default" size="100%">The Effect of Information Streams on Captial Budgeting Decisions</style></title><secondary-title><style face="normal" font="default" size="100%">European Journal of Operational Research</style></secondary-title></titles><dates><year><style  face="normal" font="default" size="100%">2004</style></year></dates><volume><style face="normal" font="default" size="100%">157</style></volume><pages><style face="normal" font="default" size="100%">759-774</style></pages><language><style face="normal" font="default" size="100%">eng</style></language><abstract><style face="normal" font="default" size="100%">In this paper a new decision rule for capital budgeting is considered. A firm has
the opportunity to invest in a project of uncertain profitability. Over time, the
firm receives additional information in the form of signals indicating the
profitability of the project. The belief that the firm needs to have in a profitable
project for investment to be optimal is calculated and analyzed. It is shown that
the probability of investing in a project with low profitability is larger when the
firm uses a conventional rule like the net present value rule. As a counterintuitive
result it is obtained that it can be optimal to undertake the investment at a later
point in time in case the expected number of signals per time unit is higher. Also
an error measure is discussed that indicates the accuracy of capital budgeting rules
in this stochastic environment.</style></abstract></record></records></xml>