Recently, market globalization and competition have forced companies to find alternative means to boost sales and revenue. The use of the cash flow is increasingly becoming a viable alternative for managers to improve their company’s profitability in a supply chain. In today’s business transactions, a supplier usually asks a manufacturer to pay via the advance-cash-credit (ACC) payment scheme i...

This paper extends the marketed asset disclaimer approach for real option valuation. In sharp contrast to the dominant real option valuation that assumes a stochastic process for an investment’s capital value, this paper demonstrates the valuation of a real option assuming that cash flow follows a stochastic process. We show that this method is at least equally effective and sometimes more intu...

I grate thank was p G12 Asset Pricing Each company faces day to day investment opportunities. Just by staying in business the company is taking a decision of reinvesting. These oportunities have to be fairly valued to overcome misallocation of resources. When a company has a contingent cash flow (growth option), and under particular circumstances this stream of cash flow is valued using the dis...

Abstract. In this paper, a new procedure for project scheduling called 'fuzzy cash flow weight' and 'fuzzy discounted cash flow weight' is studied with the aid of generalized trapezoidal fuzzy numbers. A new ranking procedure namely 'SD of PILOT' (Shortest Distance of the Point of Intersection of Legs of Trapezium) is proposed to find out the output of the above said notion. Relevant arithmetic...

In this paper we study algorithms for pricing of interest rate instruments using a lattice interest model. The price is defined as expected discounted cash flow. If the cash-flows generated by the instrument depend on the full or partial history of the interest rates (path dependent contracts), then the pricing algorithms are typically of exponential complexity. We show that for some models, in...

We develop a number of alternative discounted cash flow approaches to the appraisal of overrented property. These reveal the complicated risk characteristics and option characteristics of over-rented property, indicating that more sophisticated appraisal techniques are necessary.

Traditional cash flow estimation techniques focus on generating net cash flow estimates period-by-period, which are then discounted by the firm's cost of capital. While conceptually strong, this aggregation approach can be insensitive to the fine-grained detail so important to managing project cash flows, in particular, that investment returns are always a combination of growth (renewal) and de...

This paper considers a two-level supply chain consisting of a manufacturer and two buyers. The manufacturer produces one type of products at a finite rate and replenishes them to the buyers. Each buyer’s demand is sensitive to his selling price and the backorder is allowed at the buyers. Moreover, it is assumed that the buyers delay paying for goods to the manufacturer and two types of delay in...