TOLL ROAD INVESTMENT UNDER UNCERTAINTY
We model a portfolio of real options with cost contingency and government subsidy at the operation stage. We demonstrate that the investment value is highly sensitive to cost and revenue uncertainties. Our numerical analysis suggests that the investment value of risky project is higher when net income guarantee is used instead of minimum revenue guarantee.
Year of publication: |
2010
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Authors: | Doan, Phuong ; Patel, Kanak |
Institutions: | European Real Estate Society - ERES |
Saved in:
freely available
Extent: | text/html |
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Series: | ERES. |
Type of publication: | Book / Working Paper |
Source: |
Persistent link: https://www.econbiz.de/10010800413
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