The option value analysis and application of uncertainty of mining investment projects

Author(s):  
Baojing Sun ◽  
XueSheng Fu
2011 ◽  
Vol 135-136 ◽  
pp. 975-982
Author(s):  
Long Hua Yang ◽  
Dan Ning Zhang

The flagship firm in the supply chain integrates resources through SCM (Supply chain Management), optimizing the information flow,logistics and capital flow in the supply chain to obtain long-term competitive advantage and enable firm to enhance market response and competitive capacity. It has many abilities to get economy rent through implementation of SCM, flexible production capacity is one of those abilities. Based on the view of real options, this paper regarded this ability as a call option. Construct a model to analysis the value of flexible production capacity. Calculate the option value using Monte Carlo simulation,Matlab programming. Illustrate a numerical example and make a parameter sensitivity analysis.


Brodogradnja ◽  
2021 ◽  
Vol 72 (3) ◽  
pp. 29-44
Author(s):  
Hartono Yudo ◽  
◽  
Serliana Yulianti ◽  
Ovin Ranica Pratiwi ◽  
Tuswan Tuswan

The conversion of Landing Craft Tank into Livestock Carrier as an alternative solution was conducted by performing technical and economic assessments. The conversion analysis of LCT vessels to Livestock Carrier was achieved by performing layout rearrangement, stability test, seakeeping, and resistance test to measure the technical change occurring due to the modification. The economic added-value analysis was conducted by calculating the payback period to determine the estimated time needed to recover the cost of an investment. The result showed that the conversion of LCT ships has a good technical assessment. The intact and damage stability performance qualifies the standard criteria given by the IMO standard. The motion result qualifies the standard according to the type of vessel in terms of heave, pitch, and roll motions. Moreover, the resistance of the Livestock Carrier is reduced due to a decrease in displacement and draft. In terms of economic assessment, the Livestock Carrier conversion project qualifies for investment projects and improves the use-value and economy of a business segment.


2014 ◽  
Vol 1008-1009 ◽  
pp. 827-830
Author(s):  
Wei Hu ◽  
Kang Ren Huang ◽  
Zhi Yan Liu ◽  
Min Du

With the continuous development of electric power construction and electricity market reform, power grid investment are facing more and more uncertainties. As to the Key Project investment evaluation for grid, single stage evaluation model is too simple to make an appropriate decision, which overlooked the option value of the investment project. Therefore, in view of the periodical characteristics of investment decision-making process of the grid company’s key project, this article based on the real option analysis methods, and divide the power grid’s key projects into multiple stage according to time sequence, to evaluate each stage’s option value, and to determine the overall value of the grid company’s key investment projects, which has also provided an new train? of thought for the assessment of risk investment projects.


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