Investment Decision Making Using Optional Models

Author : David Heller
Publisher : John Wiley & Sons
Page : 200 pages
File Size : 54,5 Mb
Release : 2020-02-26
Category : Business & Economics
ISBN : 9781786305220

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Investment Decision-making Using Optional Models by David Heller Pdf

In order to create value, companies must allocate their resources effectively and evaluate investment alternatives. This book examines, from a theoretical and empirical point of view, how managerial flexibility can be integrated into investment decisions through the optional approach. Unlike the traditional net present value method, the actual options take into account indeterminate elements. These lead to unpredictable cash flows at the time of the investment decision, especially in the context of complex and risky projects. The book puts into perspective the use of optional models and their interactions. The different categories of options are the subject of practical applications, through analysis of investment decisions where uncertainty is growing. Therefore, studies make it possible to consider the flexible nature of investment choices by integrating new information and risk over time.

Author : Carlo Alberto Magni
Publisher : Springer Nature
Page : 751 pages
File Size : 46,9 Mb
Release : 2020-02-11
Category : Business & Economics
ISBN : 9783030276621

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Investment Decisions and the Logic of Valuation by Carlo Alberto Magni Pdf

This book presents a new approach to the valuation of capital asset investments and investment decision-making. Starting from simple premises and working logically through three basic elements (capital, income, and cash flow), it guides readers on an interdisciplinary journey through the subtleties of accounting and finance, explaining how to correctly measure a project’s economic profitability and efficiency, how to assess the impact of investment policy and financing policy on shareholder value creation, and how to design reliable, transparent, and logically consistent financial models. The book adopts an innovative pedagogical approach, based on a newly developed accounting-and-finance-engineering system, to help readers gain a deeper understanding of the accounting and financial magnitudes, learn about new analytical tools, and develop the necessary skills to practically implement them. This diverse approach to capital budgeting allows a sophisticated economic analysis in both absolute terms (values) and relative terms (rates of return), and is applicable to a wide range of economic entities, including real assets and financial assets, engineering designs and manufacturing schemes, corporate-financed and project-financed transactions, privately-owned projects and public investments, individual projects and firms. As such, this book is a valuable resource for a broad audience, including scholars and researchers, industry practitioners, executives, and managers, as well as students of corporate finance, managerial finance, engineering economics, financial management, management accounting, operations research, and financial mathematics. It features more than 180 guided examples, 50 charts and figures and over 160 explanatory tables that help readers grasp the new concepts and tools. Each chapter starts with an abstract and a list of the skills readers can expect to gain, and concludes with a list of key points summarizing the content.

Author : Haim Levy
Publisher : Springer Science & Business Media
Page : 439 pages
File Size : 48,9 Mb
Release : 2006-08-25
Category : Business & Economics
ISBN : 9780387293110

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Stochastic Dominance by Haim Levy Pdf

This book is devoted to investment decision-making under uncertainty. The book covers three basic approaches to this process: the stochastic dominance approach; the mean-variance approach; and the non-expected utility approach, focusing on prospect theory and its modified version, cumulative prospect theory. Each approach is discussed and compared. In addition, this volume examines cases in which stochastic dominance rules coincide with the mean-variance rule and considers how contradictions between these two approaches may occur.

Author : Johnathan Mun
Publisher : John Wiley and Sons
Page : 19 pages
File Size : 42,7 Mb
Release : 2011-09-14
Category : Business & Economics
ISBN : 9781118006337

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What Is So Real About Real Options, and Why Are They Optional? by Johnathan Mun Pdf

In the past, corporate investment decisions were cut and dried. Buy a new machine that is more efficient, make more products costing a certain amount, and if the benefits outweigh the costs, execute the investment. Hire a larger pool of sales associates, expand the current geographical area, and if the marginal increase in forecast sales revenues exceeds the additional salary and implementation costs, start hiring. Need a new manufacturing plant? Show that the construction costs can be recouped quickly and easily by the increase in revenues the plant will generate through new and improved products, and the initiative is approved. However, real-life business conditions are a lot more complicated. Your firm decides to go with an e-commerce strategy, but multiple strategic paths exist. Which path do you choose? What are the options you have? If you choose the wrong path, how do you get back on the right track? How do you value and prioritize the paths that exist? You are a venture capitalist firm with multiple business plans to consider. How do you value a start-up firm with no proven track record? How do you structure a mutually beneficial investment deal? What is the optimal timing to a second or third round of financing? This chapter provides a novel approach to applying real options to answering these issues and more.

Author : Samuel Fox,Norlin G. Rueschhoff
Publisher : Unknown
Page : 864 pages
File Size : 46,6 Mb
Release : 1986
Category : International business enterprises
ISBN : UCSD:31822004043030

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Principles of International Accounting by Samuel Fox,Norlin G. Rueschhoff Pdf

Author : Uwe Götze,Deryl Northcott,Peter Schuster
Publisher : Springer
Page : 371 pages
File Size : 48,5 Mb
Release : 2015-03-18
Category : Business & Economics
ISBN : 9783662458518

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Investment Appraisal by Uwe Götze,Deryl Northcott,Peter Schuster Pdf

This book provides an introduction to investment appraisal and presents a range of methods and models, some of which are not widely known, or at least not well covered by other textbooks. Each approach is thoroughly described, evaluated and illustrated using examples, with its assumptions and limitations analyzed in terms of their implications for investment decision-making practice. Investment decisions are of vital importance to all companies. Getting these decisions right is crucial but, due to a complex and dynamic business environment, this remains a challenging management task. Effective appraisal methods are valuable tools in supporting investment decision-making. As organisations continue to seek a competitive edge, it is increasingly important that management accountants and strategic decision-makers have a sound knowledge of these tools.

Author : Anonim
Publisher : Unknown
Page : 142 pages
File Size : 41,8 Mb
Release : 1984
Category : Engineering
ISBN : UIUC:30112018074473

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Journal of the Institution of Engineers (India). by Anonim Pdf

Author : Anonim
Publisher : Unknown
Page : 286 pages
File Size : 46,9 Mb
Release : 1990
Category : Energy policy
ISBN : STANFORD:36105046331885

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Engineering-economic modeling by Anonim Pdf

Author : Les Coleman
Publisher : Palgrave Macmillan
Page : 241 pages
File Size : 53,6 Mb
Release : 2017-04-15
Category : Business & Economics
ISBN : 3319439758

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Applied Investment Theory by Les Coleman Pdf

Institutions now dominate trading in equities around the world. Mutual funds are the most prominent, and doubly important as custodians of retirement savings. Despite this, there is no comprehensive description of fund manager behaviour, much less a matching theory. This is troubling because one of the most economically significant puzzles in finance is why experienced, well-resourced fund managers cannot outperform the market. Applied Investment Theory: How Equity Markets Behave, and Why brings together academic research, empirical evidence and real market experience to provide new insights into equity markets and their behaviours. The book draws upon the author’s rich industry experience and academic research, plus over 40 interviews with fund managers on three continents and across different markets. The result is an innovative model that explains the puzzle of poor performance by mutual funds in terms of structural features of markets, the managed investment industry, and the conduct of fund managers. This book provides a fully integrated depiction of what markets and investors do, and why – insights that will resonate with the needs of investors, wealth managers and industry regulators. It is fully documented, but free of jargon and arcane math, and provides a grounded theory that is relevant to anyone who wants to pierce the opacity of mutual fund operations. Applied Investment Theory sets out a new paradigm in investment that is at the forefront of what should be an industrial-scale development of new finance theory following two decades of almost back-to-back financial crises.

Author : Norlin G. Rueschhoff
Publisher : Greenwood
Page : 200 pages
File Size : 40,7 Mb
Release : 1976
Category : Business & Economics
ISBN : UCSC:32106000974771

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International Accounting and Financial Reporting by Norlin G. Rueschhoff Pdf

Author : Hercules Vladimirou
Publisher : Unknown
Page : 456 pages
File Size : 49,5 Mb
Release : 2001
Category : Computer programming
ISBN : STANFORD:36105110488066

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Applied Mathematical Programming and Modeling IV (APMOD 98) by Hercules Vladimirou Pdf

Author : Cornell University
Publisher : Unknown
Page : 712 pages
File Size : 41,9 Mb
Release : 2006
Category : Universities and colleges
ISBN : CORNELL:31924101553729

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Cornell University Courses of Study by Cornell University Pdf

Author : Antonio J. Conejo,Luis Baringo,S. Jalal Kazempour,Afzal S. Siddiqui
Publisher : Springer
Page : 389 pages
File Size : 47,7 Mb
Release : 2016-06-10
Category : Business & Economics
ISBN : 9783319295015

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Investment in Electricity Generation and Transmission by Antonio J. Conejo,Luis Baringo,S. Jalal Kazempour,Afzal S. Siddiqui Pdf

This book provides an in-depth analysis of investment problems pertaining to electric energy infrastructure, including both generation and transmission facilities. The analysis encompasses decision-making tools for expansion planning, reinforcement, and the selection and timing of investment options. In this regard, the book provides an up-to-date description of analytical tools to address challenging investment questions such as: How can we expand and/or reinforce our aging electricity transmission infrastructure? How can we expand the transmission network of a given region to integrate significant amounts of renewable generation? How can we expand generation facilities to achieve a low-carbon electricity production system? How can we expand the generation system while ensuring appropriate levels of flexibility to accommodate both demand-related and production-related uncertainties? How can we choose among alternative production facilities? What is the right time to invest in a given production or transmission facility? Written in a tutorial style and modular format, the book includes a wealth of illustrative examples to facilitate comprehension. It is intended for advanced undergraduate and graduate students in the fields of electric energy systems, operations research, management science, and economics. Practitioners in the electric energy sector will also benefit from the concepts and techniques presented here.

Author : Kerry L. Kirby
Publisher : Unknown
Page : 27 pages
File Size : 42,7 Mb
Release : 1985
Category : Land use
ISBN : UOM:39015098797312

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A Dynamic Land Use Allocation Model by Kerry L. Kirby Pdf

"This paper is divided into two parts. Part one is a description of the theory of the model and is excerpted from an abstract by Brian F. Walsh, Research Analyst, The Rouse Company and Sigurd Grava, Professor, Columbia University. Part two is a description of the Shreve Area Council of Governments implementation and application of the model to forecast future land use in the Shreveport/Bossier City Louisiana Urbanized Area." --

Author : Kinga Z. Elo
Publisher : International Monetary Fund
Page : 68 pages
File Size : 52,6 Mb
Release : 2007-04
Category : Business & Economics
ISBN : UCSD:31822034594036

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The Effect of Capital Controls on Foreign Direct Investment Decisions Under Country Risk with Intangible Assets by Kinga Z. Elo Pdf

This paper examines how capital controls affect FDI decisions and how the impact of these restrictive measures varies with different levels of country risk. We construct a model of firms' FDI decisions, broadly in Dunning's "eclectic theory" framework, using "real options" to emphasize economic uncertainty and country risk. Numerical results of the model take the form of "quality statistics" that uncover the underlying dynamics hidden in the aggregate data that is responsible for the low performance of recent empirical studies. We find that increasing levels of capital controls reduce the life-span of FDI investments at each level of country risk and foreign investors' willingness towards risk sharing increases. We reveal a significant interaction between capital control and country risk, resulting in a nonlinear relationship between these and the volatility and volume statistics. We estimate a standard cross-sectional model that provides strong support for our theoretical findings.