THE CAPITAL INVESTMENT DECISION UNDER INFLATION IN VIETNAM: A CASE STUDY
Journal Title: Asian Economic and Financial Review - Year 2013, Vol 3, Issue 10
Abstract
Inflation and its adverse impacts on the economy are attacking Vietnamese enterprises at two-digit level at present. The managers need the effective foreseeing tools to prepare their budget to be suit to the complex evolvement of market economy and wait in front of the possible risks in future. A Cash Budget model which contains the trends of changes in variables under the impact of inflation will help Vietnamese soldering sticks manufacturers to control operational capital sources and forecast on the necessary borrowings as well as the payments in the near future better. ANOVA F-test experiments give the company more alternative choices between different types of machines and outline the initial investment costs of project. Finally, Capital Budgeting methods will assist to check the effectiveness in long-term of the investment. The theories on relationship between normal interest rate, real interest rate and inflation rate such as the Fisher equation, the discount rate of Cash flows therefore are studied carefully to discuss, argue and give out the deep understanding and new perceptions.
Authors and Affiliations
Chen-Chang Lo| Dashu, Kaohsiung, Taiwan R.O.C., Yaling Lin*| Dashu, Kaohsiung, Taiwan R.O.C., Tsung-Li Chi| I-Shou University, Taiwan Department of Finance, Hong Nhung Vo| I-Shou University, Taiwan Department of Finance
Keywords
Related Articles
- EP ID EP1965
- DOI -
- Views 508
- Downloads 58
DETERMINANTS OF THE AUD/USD EXCHANGE RATE AND POLICY IMPLICATIONS
This paper examines short-run determinants of the Australian dollar/U.S. dollar (AUD/USD) exchange rate based on a simultaneous-equation model. Applying the EGARCH method, the paper finds that the AUD/USD exchange rate i...
COULD ZHOU XIAOCHUAN PUT OPTION SAVE CHINA’S CAPITAL MARKET?
This article proposes a new framework to analyze the impact of monetary policy on asset price. Based on the Sign-Restriction Approach proposed by Uhlig (2005) some orthogonal restrictions are imposed to filter out the in...
IMPACT OF EXCHANGE RATE IN THE RUN-UP TO EU ACCESSION: AN EMPIRICAL ANALYSIS OF REPUBLIC OF MACEDONIA
Because of the fact that South-eastern European countries rely mainly on exchange rate anchors to reduce inflation, the appreciation of the real exchange rate among countries in the region is significant, and it is sligh...
ROBUST MONETARY POLICY IN AN UNCERTAIN ECONOMIC ENVIRONMENT: EVIDENCE FROM TUNISIAN ECONOMY
This paper tries to study the robust monetary policy in an uncertain economic environment. More precisely, our idea is to know how to conduct monetary policy in the case that the central bank does not correctly perceive...
EVALUATION IN DYNAMIC PROCESS SPILLOVER EFFECT: ELEVEN MAJOR EXCHANGE RATE MARKETS
This paper analyzes the dynamic process of the spillover effects among major eleven exchange rate markets. The period spanning from 2000 to 2014 includes several financial crises and Chinese monetary reforms. By the vect...