The idea that Monte Carlo simulation can not be applied to the pricing of options (real or financial) with early exercise features has been overridden in the light of new research results in the last decade. This paper attempts to contribute to this revived interest on Monte Carlo simulation valuation, by applying the proposed least–squares simulation method to the valuation of a hypothetical n...

Most enterprises have identified the need for flexibility, but the selection of the right degree of flexibility is a complex task. Sophisticated methods, which consider uncertainties in the valuation model, are time consuming and require a supporting software tool. The existing ones are applicable for very specific planning tasks only. In this paper, a methodology to support the valuation of ma...

In this paper we discuss the development of a valuation system of asset-liability management of portfolios of life insurance policies on advanced architectures. According to the new rules of the Solvency II project, numerical simulations must provide reliable estimates of the relevant quantities involved in the contracts; therefore, valuation processes have to rely on accurate algorithms able t...

Choice experiments, a stated preference valuation method, are proposed as a tool to assign monetary values to environmental externalities during the ex-ante stages of environmental impact assessment. This case study looks at the impacts of the Costa Rican Institute of Electricity’s Toro 3 hydroelectric project and its affects on the Recreo Verde tourism center in San Carlos, Costa Rica. Compare...

This paper focuses on inconsistencies arising from the use of NPV and CAPM for capital budgeting. It shows that (i) CAPM capital budgeting decision-making based on disequilibrium NPV is deductively inferred by the Capital Asset Pricing Model, (ii) the use of the disequilibrium NPV is widespread in finance both as a decision rule and as a valuation tool, (iii) the disequilibrium NPV does not gua...

Travel cost and contingent valuation methods are applied to the problem of estimating the potential consumer surpltrs avai!abfe to international nature tourists from a rain forest conservation project in Madagascar. Data are derived from srrrveys of nature tourists in Madagascar and international, nature tolrrism professionals in the U.S. and Europe. Typical trip travel cost models are used to ...

The present project has a social focus, which pretends develop a system (hardware and software) capable to achieve a valuation of the neuromusclescheletic children’s march, which is cerebral paralysis. This valuation will be done by several images, representing the march of the studied subject in a graphic way, to be compared with a normal march patron that will be evaluated by an expert who wi...

The aim of this paper is to generalize the‎‎notion of pseudo-almost valuation domains to arbitrary‎ ‎commutative rings‎. ‎It is shown that the classes of chained rings‎ ‎and pseudo-valuation rings are properly contained in the class of‎ ‎pseudo-almost valuation rings; also the class of pseudo-almost‎ ‎valuation rings is properly contained in the class of quasi-local‎ ‎rings with linearly ordere...

Aim of study: We checked if an infrastructure investment project for a nursery to produce Eucalyptus forest seedlings using the real options approach was economically viable, in order verify influence deferral, expansion and abandonment on value, as well their concatenation.
 Area Our study based technical-economic coefficients be installed São Paulo’s state Midwest region, Brazil.
 M...