Munich Personal RePEc Archive

Giga-Investments: Modelling the Valuation of Very Large Industrial Real Investments

Collan, Mikael (2004): Giga-Investments: Modelling the Valuation of Very Large Industrial Real Investments. Published in: TUCS Dissertations , Vol. 57, (November 2004): pp. 1-145.

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Abstract

In this doctoral dissertation characteristics of very large industrial real investments (VLIRI) are investigated and a special group of VLIRI is defined as giga-investments. The investment decision-making regarding to giga-investments is discussed from the points of view of discounted cash-flow based methods and real option valuation. Based on the bacground of establishing giga-investments, state-of-the-art in capital budgeting (including real options) and by applying fuzzy numbers a novel method for the evaluation and profitability analysis of giga-investments is presented. Application of the method is illustrated and issues regarding investment decision-making of large industrial real investments are discussed.

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