A Valuation Model for Project Standby Capacity

Jan Vlachý

Ekonomika a Management, 2009, vol. 2009, issue 4

Abstract: This paper addresses the issue of project standby capacity optimization for capital budgeting. A detailed analysis and case study show that this is a particular real-option based situation, which solicits the use of statistical simulation. The method can be recommended as a useful heuristic for corporate capital budgeting, as well as for college-level class instruction.

Keywords: Reálné opce; Real options; Investiční rozhodování; Capital budgeting; Monte Carlo; rezervní kapacita; statistická simulace; Standby Capacity; Statistical Simulation (search for similar items in EconPapers)
JEL-codes: C63 G31 M21 (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.vse.cz/eam/download.php?jnl=eam&pdf=83.pdf
http://www.vse.cz/eam/83 (text/html)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prg:jnleam:v:2009:y:2009:i:4:id:83

Ordering information: This journal article can be ordered from
Redakce Ekonomika a management, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3
http://www.vse.cz/eam/

Access Statistics for this article

Ekonomika a Management is currently edited by Eva Kislingerová

More articles in Ekonomika a Management from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().