Investment Decision with Floating Rate Loan Choice Based on NPV Approach

CCS Investment Decision Based on Real Options

Based on the theory of real options, this paper establishes a investment decision-making model that could evaluate the development of CCS considering some uncertainties: feed-in tariff, the clean price, carbon price, incentives and subsidies from the government and the progress of technology. This model calculates the investment value of CCS project by studying the binomial tree model of real o...

The Effect Of Salvage Market On Strategic Technology Choice And Capacity Investment Decision Of Firm Under Demand Uncertainty

Loan Rate Setting

We propose a heteroscedastic regression model to identify the determinants of the dispersion in interest rates on loans granted to small and medium sized enterprises. We interpret unexplained deviations as evidence of the banks’ discretionary use of market power in the loan rate setting process. “Discretion” in the loan-pricing process is most important, we find, if: (i) loans are small and unc...

Utility of Choice: An Information Theoretic Approach to Investment Decision-making

In this paper we have devised an alternative methodological approach for quantifying utility in terms of expected information content of the decisionmaker’s choice set. We have proposed an extension to the concept of utility by incorporating extrinsic utility; which we have defined as the utility derived from the element of choice afforded to the decision-maker by the availability of an object ...

Investment Decision on Information System Security: A Scenario Approach

This paper presents scenarios of information security—defending against directed security threats, risk-averse firm’s willingness to invest, and attacker’s propensity to security measures—each enhancing our understanding of a firm’s information security investment under different circumstances. We find that, when a firm tries to defend against directed attacks, the relative size of potential lo...