Risk Analysis in Capital Investment Appraisal with Correlated Cash Flows: Simple Analytical Methods
| dc.contributor.author | Pflaumer, Peter | |
| dc.date.accessioned | 2019-10-18T12:47:39Z | |
| dc.date.available | 2019-10-18T12:47:39Z | |
| dc.date.issued | 2017-07 | |
| dc.description.abstract | Since uncertainty is the crucial point of a capital investment decision, risk analysis in capital budgeting is often applied. Usually risk analysis is carried out by a Monte Carlo simulation. The aim of this article is to present simple analytical methods which allow us to calculate the standard deviation of a project with correlated cash flows as a risk measure. These methods are compared with simulation procedures carried out with R, and it is shown that the proposed simple analytical methods are indeed a quick and efficient procedure for assessing the risk of an investment project where the cash flows are correlated. | en |
| dc.identifier.uri | http://hdl.handle.net/2003/38294 | |
| dc.identifier.uri | http://dx.doi.org/10.17877/DE290R-20264 | |
| dc.language.iso | en | de |
| dc.subject | capital budgeting | en |
| dc.subject | uncertainty | en |
| dc.subject | finance | en |
| dc.subject | net present value | en |
| dc.subject.ddc | 310 | |
| dc.title | Risk Analysis in Capital Investment Appraisal with Correlated Cash Flows: Simple Analytical Methods | en |
| dc.type | Text | de |
| dc.type.publicationtype | conferenceObject | de |
| dcterms.accessRights | open access | |
| eldorado.secondarypublication | false | de |
| eldorado.secondarypublication.primarycitation | Paper presented at the 61st ISI World Statistics Congress (WSC) held in Marrakech, Morocco from 16 to 21 July 2017 | en |