Trade credit represents a substantial portion of short-term credit for most firms. A trade credit decision is usually limited to a comparison of the effective cost of trade credit with the annual cost of borrowing. If the cost of not taking the cash discount exceeds the firm’s borrowing cost, the decision is to take the cash discount. This article examines traditional trade credit analysis, and...

Three dedicated approaches to the calculation of the risk-adjusted net present value (rNPV) in drug discovery projects under different assumptions are suggested. The probability of finding a candidate drug suitable for clinical development and the time to the initiation of the clinical development is assumed to be flexible in contrast to the previously used models. The rNPV of the post-discover...

In this paper, a practical application of a valuation method that decouples the time value of money from the risk associated with the project is used to value an investment on a solar project. The proposed method is termed decoupled net present value (DNPV). A simple investment renewable energy project is presented using both the traditional NPV techniques and the proposed DNPV. The proposed me...

When countries attempt to stabilize annual inflation rates that are greater than 40 percent, the domestic stock market appreciates by 24 percent on average. The present value of the long-run benefits to shareholders of reducing high inflation outweighs the present value of the short-run costs. In contrast, the average market response is economically weak and statistically insignificant if the p...

Decision making has always been a difficult process, based on various combinations if objectivity (when scientific tools were used) and subjectivity (considering that decisions are finally made by people, with their strengths and weaknesses). The IT revolution has also reached the areas of management and decision making, helping managers make better and more informed decisions by providing them...

This study concerns the scope to improve water flooding in heterogeneous reservoirs. We used an existing, in-house developed, optimization program consisting of a reservoir simulator in combination with an adjoint-based optimal control algorithm. In particular we aimed to examine the scope for optimization in a two-dimensional horizontal reservoir containing a single high permeable streak, ...

Abstract: This paper provides an investment decisionmaking criterion under uncertainty using real options methodology to evaluate if an investment should be made immediately, cautiously, deferred (wait-and-watch), or foregone. We develop a decision-making index d, which is equal to the expectation of net present value (NPV) normalized by its standard deviation. Under a lognormal assumption of t...

in this paper, a novel mathematical model for a preemption multi-mode multi-objective resource-constrained project scheduling problem with distinct due dates and positive and negative cash flows is presented. although optimization of bi-objective problems with due dates is an essential feature of real projects, little effort has been made in studying the p-mmrcpsp while due dates are included i...