This paper studies the effect of interest rates on investment in an environment where firms make irreversible investments with uncertain pay-offs. In this setting, changes in the interest rate affect both the cost of capital and the cost of delaying investment to acquire information. These two forces combine to generate an aggregate investment demand curve that is a backward-bending function of...

This research performs the advanced exergy and exergoeconomic analyses of a combined cycle power plant (CCPP) located in Zavareh, Iran. The objective of this research is to evaluate the irreversibilities, their related cost rates of each part of the CCPP that can be avoided and the inefficiencies of each part that caused by other components. The advanced exergy and exergoeconomic analyses indic...

This study models a joint pricing, inventory, and preservation decision-making problem for deteriorating items subject to stochastic demand and promotional effort. The generalized price-dependent stochastic demand, time proportional deterioration, and partial backlogging rates are used to model the inventory system. The objective is to find the optimal pricing, replenishment, and preservation t...

interest as investment opportunity cost or in other words cost of obtaining the credit requirement in the production process, have a key role in the good's cost price and hence it's necessary to control this kind of variables that have harmful effects on the interest rate's trends. among this, the unexpected changes in some variables that can have destructive effects on interest ...

The present study investigates the impact of various factors affecting coal-fired power plant economics of 210 MW subcritical unit situated in north India for electricity generation. In this paper, the cost data of various units of thermal power plant in terms of power output capacity have been fitted using power law with the help of the data collected from a literature search. To have a realis...

Although significant private investment is absorbed in different sectors of power systems, transmission sector is still suffering from appropriate private investment. This is because of the pricing policies of transmission services, tariffs, and especially for investment risks. Investment risks are due to the uncertain behaviour of power systems that discourage investors to invest in the transm...

We examine the optimal choice of hurdle rates in a capital budgeting setting in which a manager receives superior information regarding the profitability of an investment project. Unlike the prior capital budgeting literature that treats the distribution of investment returns as exogenous, we consider a scenario in which the manager can engage in upfront project development activities to improv...

This paper investigates the effectiveness of investment incentives and corporate income taxes in influencing production and investment decisions in the Turkish electrical machinery, non-electrical machinery and transportation equipment industries. Three tax instruments are considered; the corporate income tax (CIT), the investment tax allowance (ITA), and the capital cost allowance (CCA). The r...