OPTIONS METHOD FOR OIL EXPLOITATION INVESTMENT PROJECT EFFICIENCY EVALUATION UNDER RISK CONDITIONS

Systems Analysis of Investment Project Efficiency Evaluation

An evaluation of overseas oil investment projects under uncertainty using a real options based simulation model

This paper applies real options theory to establish an overseas oil investment evaluation model that is based on Monte Carlo simulation and is solved by the Least Squares Monte-Carlo method. To better reflect the reality of overseas oil investment, our model has incorporated not only the uncertainties of oil price and investment cost but also the uncertainties of exchange rate and investment en...

Extending Real Options Theory to Account for Property Investment under Conditions of Uncertainty and Incomplete Markets

The literature on real options theory is both diverse and rapidly expanding. Now standard techniques for the pricing of derivatives given a stochastic process for the price of underlying assets, are increasingly applied to the case of real investment in productive assets, including property development (Trigeorgis, 1996). Typically, this latter class of investments is represented as a set of op...

Project resource investment problem under progress payment model

As a general branch of project scheduling problems, resource investment problem (RIP) considers resource availabilities as decision variables to determine a level of employed resources minimizing the costs of the project. In addition to costs (cash outflows), researchers in the later extensions of the RIP took payments (cash inflows) received from clients into account and used the net present v...

financial evaluation of investment projects under inflationary conditions

in recent years, information has become a major consideration in making financial decisions. in this paper there methods of project evaluation under inflationary conditions are descried and compared. the three methods are: i• gross profit per unit approach 2• current price each now 3• fixed price (real) cach flow in section ii of the paper different conditions under which all three approaches y...