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Giga-Investments: Modelling the Valuation of Very Large Industrial Real Investments

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Author Info
Collan, Mikael

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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.

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File URL: http://mpra.ub.uni-muenchen.de/4328/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 4328.

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Date of creation: Nov 2004
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Handle: RePEc:pra:mprapa:4328

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Related research
Keywords: Real Options; Fuzzy Real Option Valuation; Giga-Investments; Very Large Industrial Real Investments; Dissertation;

Find related papers by JEL classification:
Y40 - Miscellaneous Categories - - Dissertations - - - Dissertations
G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Investment Policy
Y4 - Miscellaneous Categories - - Dissertations

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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    Other versions:
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    Other versions:
  21. McDonald, Robert & Siegel, Daniel, 1986. "The Value of Waiting to Invest," The Quarterly Journal of Economics, MIT Press, vol. 101(4), pages 707-27, November. [Downloadable!] (restricted)
  22. Collan, Mikael, 2004. "Fuzzy Real Investment Valuation Model for Giga-Investments, and a Note on Giga-Investment Lifecycle and Valuation," MPRA Paper 4329, University Library of Munich, Germany. [Downloadable!]
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  29. Collan, Mikael & Långström, Stefan, 2002. "Flexibility in Investments: Exploratory Survey on How Finnish Companies Deal with Flexibility in Capital Budgeting," MPRA Paper 4350, University Library of Munich, Germany. [Downloadable!]
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    Other versions:
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Collan, Mikael & Fullér, Robert & József, Mezei, 2008. "A Fuzzy Pay-off Method for Real Option Valuation," MPRA Paper 13601, University Library of Munich, Germany. [Downloadable!]
  2. Collan, Mikael, 2008. "New Method for Real Option Valuation Using Fuzzy Numbers," Working Papers 466, IAMSR, Åbo Akademi. [Downloadable!]
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