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PROCEEDINGS May 15, 16, 17, 18, 2005 - Casualty Actuarial Society

PROCEEDINGS May 15, 16, 17, 18, 2005 - Casualty Actuarial Society

PROCEEDINGS May 15, 16, 17, 18, 2005 - Casualty Actuarial Society

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328 THE APPLICATION OF FUNDAMENTAL VALUATION PRINCIPLESorValue = FC 0 + OE 1(h ¡ g) ¡ g £ C 0(h ¡ g) : (EVA-10)This is the same result as for the DCF model, as shown in EquationDCF-5.

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