Investment and capacity choice under uncertain demand

Article Abstract:

A real options study was conducted concerning an investment problem, where a company has to determine optimal investment timing and optimal capacity choice at the same time under conditions of irreversible investment expenditures and uncertainty in future demand. After the project is set up with a certain maximum capacity, this capacity is fixed as an upper boundary to the output and cannot be reset at a later date. Findings showed that, in the framework of this once and for all decision, uncertainty in future demand causes a rise in optimal installed capacity.

Open-End Investment Funds, Investment Funds & Trusts, HOLDING AND OTHER INVESTMENT OFFICES, Dynamic programming

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On "investment decisions in the theory of finance: some antinomies and inconsistencies"

Article Abstract:

A study refuting the claims in Magni's paper "Investment Decisions in the Theory of Finance: Some antinomes and inconsistencies", which discuss the anamolies arising from usage of Net Present Value rule for investment decisions is presented.

United Kingdom, Present value analysis

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Capital budgeting, investment project valuation and financing mix: Methodological proposals

Article Abstract:

Methodological proposals for capital budgeting, investment project valuation and financing mix are presented.

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