Glossary entry

German term or phrase:

Kapitalwert der Differenzinvestition

English translation:

NPV (net present value) of the difference between the two investments

Added to glossary by Marc Svetov
Dec 18, 2015 19:06
8 yrs ago
2 viewers *
German term

Differenzinvestition

German to English Bus/Financial Business/Commerce (general) Management control
Examples:
"Hr. Meier berechnet den Kapitalwert der Differenzinvestition, in dem er die Investition A von der Investition B abzieht und den Kapitalwert der so bestimmten Zahlungsreihe bestimmt.
"Wenn auf der Grundlage des Kapitalwertes sich eine der beiden Investitionen als die bessere herausstellen soll, so kann das nur an der Höhe und des zeitlichen Verlaufs der Zahlungsströme liegen.
Wie kann er aber den Unterschied bestimmen?
Ich kann ja, so denkt er, die eine Investition von der anderen Investition abziehen und erhalte dann als Differenz eben den Unterschied zwischen den Investitionen.
Und dann muss ich nur noch den Kapitalwert der Differenzinvestition bestimmen.
Gedacht, getan.
Hr. Meier berechnet den Kapitalwert der Differenzinvestition, in dem er die Investition A von der Investition B abzieht und den Kapitalwert der so bestimmten Zahlungsreihe bestimmt.
Da der Kapitalwert der Differenzinvestition positiv ist, muss die Investition B besser als die Investition A sein."
Sorry it's so long-winded. Does this mean "alternative investment"? I am not sure what it means. Can anybody help? I would appreciate it greatly.

Discussion

Marc Svetov (asker) Dec 18, 2015:
Notional investment Does notional investment express the difference in investment?
Bruce Campbell Dec 18, 2015:
Kapitalwert = NPV I would translate Kapitalwert by NPV (net present value). Essentially the text describes calculating the difference between the NPVs of the two investments by calculating the NPV of the differences between the cash flows of the two investments.
Marc Svetov (asker) Dec 18, 2015:
Fictitious investment? Last try.
Marc Svetov (asker) Dec 18, 2015:
Difference of investment? How about difference of investment?
Marc Svetov (asker) Dec 18, 2015:
Difference in investment? Not sure whether that's right either.

Proposed translations

6 hrs
Selected

see discussion below

As I mentioned in my discussion entry, "Kapitalwert" should be translated as NPV (net present value), i.e. the discounted value of future cash flows.

What the text is discussing is calculating the difference between the NPVs of two alternative investments, Investment A and Investment B, by calculating the NPV of the differences between their future cash flows.

I would translate "Kapitalwert der Differenzinvestition" as the "difference between the NPVs of the two investments".

If you feel you have to literally translate "Differenzinvestition", then you might use "NPV of the difference between the two investments", but I don't think this is as clear as the choice above.

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Note added at 1 day4 hrs (2015-12-19 23:59:10 GMT)
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You can find "Kapitalwert" -> "net present value" (NPV) by searching in proz. There is also an entry in the German wikipedia for "Kapitalwert".
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4 KudoZ points awarded for this answer. Comment: "Thanks!"
+1
44 mins

[see my suggestion for the whole sentence]

This kind of repetition (Differenz, Investition and Kapitalwert) is not acceptable in English. I'm not sure what the investment and the "Zahlungsreihe" are, but I'd say something like this:

Hr. Meier berechnet den Kapitalwert der Differenzinvestition, in dem er die Investition A von der Investition B abzieht und den Kapitalwert der so bestimmten Zahlungsreihe bestimmt.

Mr Meier calculates the difference in capital values by deducting investment A from investment B. This determines the capital value of the resulting payment series.
Peer comment(s):

agree Alexander Schleber (X) : Sounds exceedingly logical
39 mins
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2 hrs

notional investment

Let's 'grab the bull by the horns' and have a translation of the actual term.

Fictitious investment as per online translations looks like a scam.

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Note added at 3 hrs (2015-12-18 22:14:32 GMT)
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notional balancing investment, then, if wanted to express the difference
Example sentence:

NVESTMENT SCHEMES Fraudulent investment schemes provide another method for a company to overstate assets by creating fictitious investments

Since there is zero net investment in any such strategy, the percent return can be made as large or small as desired by simply changing the notional value used

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