We use portfolios of passive investment strategies to replicate the interest risk of banks’ banking books. The following empirical statements are derived: (i) Changes in banks’ present value and in their net interest income are highly correlated, irrespective of the banks’ portfolio composition. (ii) However, banks’ portfolio composition has a huge impact on the ratio of changes in net interest...

A real option analysis of dry-grind corn ethanol plants compared to a standard net present value analysis (NPV) shows that the option values increase entry prices and lower exit prices of investment and disinvestment considerably. For a large plant, the gross margin of ethanol price over the corn price for a gallon of ethanol using NPV shows that entry will occur with a $0.45 margin and shutdow...

Using the tools of real-options theory, Farzin, Huisman and Kort (1998) investigate the optimal timing of technology adoption in a model in which there is ongoing technological progress and the "rm's investment decision is irreversible. When the "rm can switch technologies n(R times, Farzin et al. (1998) obtain the surprising result that the criterion for adopting a new technology derived from ...

the purpose of this article is to evaluate the pivotal irrigated wheat project by cost-benefit analysis method in order to find the internal rate of return and the ratio of present value of net benefits to costs.to this end, we have estimated the economic surplus created due to shift in wheat supply , as result ofimplementation ofthe project and have calculated the above criteria. we found that...

Today, producing solutions for the effective and efficient use of energy resources is among priority areas in almost every sector. In terms consumption, each solution developed building sector has a great impact on reducing total consumption. this study, different types insulation materials used walls roof were investigated cost-effectiveness order to improve performance located 1st degree day ...