Real options and the perverse effect of interest rates on investment timing

2020 ◽  
Author(s):  
Óscar Gutiérrez
Keyword(s):  
Interest Rates ◽  
Real Options ◽  
Investment Timing ◽  
Perverse Effect

A Study on Estimating Investment Timing of Real Options

2008 ◽  
Vol 53 (3) ◽  
pp. 197-229 ◽  
Author(s):  
Hyun J. Han ◽  
Chan S. Park
Keyword(s):  
Real Options ◽  
Investment Timing

scholarly journals A New Look at the Economic Evaluation of Wind Energy as an Alternative to Electric and Natural Gas-Powered Irrigation

2013 ◽  
Vol 45 (4) ◽  
pp. 739-751 ◽  
Author(s):  
Dmitry Lima ◽  
Gregory Colson ◽  
Berna Karali ◽  
Bridget Guerrero ◽  
Stephen Amosson ◽  
...  
Keyword(s):  
Economic Evaluation ◽  
Natural Gas ◽  
Wind Energy ◽  
Real Options ◽  
Net Present Value ◽  
Present Value ◽  
Irrigation Systems ◽  
Investment Timing ◽  
Stochastic Nature ◽  
Replacement Decisions

An extension of the Guerrero et al. (2010) net present value (NPV) analysis using real options analysis (ROA) is offered to improve machinery replacement decisions. Specifically, the feasibilities of replacing natural gas irrigation systems with either electric or hybrid (electric/wind) systems are evaluated. Results indicate NPV and ROA criteria can yield opposite decisions depending on the stochastic nature of the parameters, reversibility of the investment, and flexibility of investment timing. For policy, NPV results indicate that replacing natural gas with a hybrid is on the cusp of being optimal. However, ROA indicates this NPV implication may not hold.

scholarly journals Real Options And The Use Of Discrete And Continuous Interest Rates

2020 ◽  
Author(s):  
Neal Lewis ◽  
Ted Eschenbach ◽  
Joseph Hartman
Keyword(s):  
Interest Rates ◽  
Real Options
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