Discussion Paper of the Institute for Organisational Economics 4/2021
Kapitalwert bei Null- und Negativzinsen
Net Present Value with Zero and Negative Interest Rates
Even with zero and negative interest rates, the net present value can be easily calculated, at least over finite periods of time, and used for investment decisions by companies. Economically, it is relevant why there are interest rates of and below zero at all and whether higher consumption would then not be better than resource-consuming investments.