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.

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.

• Item Type: MPRA Paper
• Institution: Institute for Advanced Management Systems Research
• Language: English
• Keywords: Real Options; Fuzzy Real Option Valuation; Giga-Investments; Very Large Industrial Real Investments; Dissertation
• Subjects: Y - Miscellaneous Categories > Y4 - Dissertations (unclassified) > Y40 - Dissertations (unclassified); G - Financial Economics > G3 - Corporate Finance and Governance > G31 - Capital Budgeting ; Fixed Investment and Inventory Studies ; Capacity; Y - Miscellaneous Categories > Y4 - Dissertations (unclassified)

References

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