Fuzzy Real Investment Valuation Model for Giga-Investments, and a Note on Giga-Investment Lifecycle and Valuation

Collan, Mikael (2004): Fuzzy Real Investment Valuation Model for Giga-Investments, and a Note on Giga-Investment Lifecycle and Valuation. Published in: TU CS Technical Report No. 617 (July 2004): 0-20.

Abstract

Very large industrial real investments are different from financial investments and from small real investments, even so, their profitability is commonly valued with the same methods. A definition of a group of very large industrial real investments is made, by requiring three common characteristics. The decision support needs arising from these characteristics are discussed and a summary of existing methods to value and to provide decision support for large industrial investments is presented. A model built specifically to support investment decisions of very large industrial real investments and a numerical application of the model are presented. The model is discussed and commented. A note is made on an observation regarding the giga-investment lifecycle and its effect on giga-investment valuation.

• Item Type: MPRA Paper
• Institution: Institute for Advanced Management Systems Research
• Language: English
• Keywords: Large industrial investments; Profitability analysis; Fuzzy corporate finance; Capital Budgeting
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance > G31 - Capital Budgeting; Fixed Investment and Inventory Studies

References

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