This paper addresses the problem of irreversibility of investments, a topic related to the recently evolving "real options" literature. In the presence of alternatives, the opportunity to invest in a large "irreversible" project with uncertain benefits and costs is similar to a financial "call" option. In exercising this option one forgoes the potential gains from postponing the investment decision. Conventional economic appraisal techniques ignore...
Exibir mais
DETALHES
-
1991/08/31
-
Documento de trabalho departamental
-
11330
-
1
-
1
-
2010/07/01
-
Decision making under uncertainty - an option valuation approach to power planning
-
discount rate
DOWNLOADS
COMPLETAR RELATÓRIO
Versão oficial do documento (pode conter assinaturas, etc.)
-
Total Downloads** : 371
*A versão do texto é um OCR incorreto e está incluído unicamente em benefício de usuários com conectividade lenta.