IDEAS home Printed from https://ideas.repec.org/a/fzy/fuzeco/vxviy2011i1p21-37.html
   My bibliography  Save this article

Valuation Of Industrial Giga-Investments: Theory And Practice

Author

Listed:
  • Collan, M.

    (University of Turku)

Abstract

Industrial giga-investments are long term irreversible very large, hundred million-class, industrial real investments that have a long building time. These investments are important to the companies undertaking them and to the economy as a whole. Giga-investments can sometimes even steer their markets. Giga-investments are different from financial and small real investments in many respects, but are often analysed and valued by using the same methods; this is most often not realistic and does not offer best possible decision support. In this paper we discuss and present industrial giga-investments. We discuss their special characteristics that require attention, when their profitability and value are analyzed. An industrial giga-investment case is presented and a numerical illustration of how industrial giga-investments can be valued with the pay-off method is presented.

Suggested Citation

  • Collan, M., 2011. "Valuation Of Industrial Giga-Investments: Theory And Practice," Fuzzy Economic Review, International Association for Fuzzy-set Management and Economy (SIGEF), vol. 0(1), pages 21-37, May.
  • Handle: RePEc:fzy:fuzeco:v:xvi:y:2011:i:1:p:21-37
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Savolainen, Jyrki, 2016. "Real options in metal mining project valuation: Review of literature," Resources Policy, Elsevier, vol. 50(C), pages 49-65.
    2. Luukka, Pasi & Collan, Mikael, 2015. "New fuzzy insurance pricing method for giga-investment project insurance," Insurance: Mathematics and Economics, Elsevier, vol. 65(C), pages 22-29.

    More about this item

    Keywords

    industrial giga-investments; industrial real investments; pay-off method; real option valuation;

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fzy:fuzeco:v:xvi:y:2011:i:1:p:21-37. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Aurelio Fernandez). General contact details of provider: http://edirc.repec.org/data/sigefea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.