The economic evaluation of ultra-long-lived investment projects is not only challenging due to the choice of the planning horizon but also due to the discounting of future uncertain cash flows. Thus, for real world investment decisions a better understanding of the project's risks and their...

How to measure a project's implied rate of return has long been an unresolved problem, except for some special cases. This paper derives return on present cost (ROPC) as the correct measure of an investment project's implied rate of return. The IRR is a biased measure except for projects...

A new indicator of profitableness (DIRR) of the investor and recipient of the investment project is proposed, which is a generalization and development of the concept of internal rate of return (IRR). It is formed in the form of the sum of the cost of the participant's capital and the project's...

The Simulation-Based Excess Return Model (SERM) offers a simple, practical decision-making method for underwriting real estate development projects. It addresses the shortcomings of discounted cash flow modeling by taking into account the probabilistic distribution of outcomes and is based on...

Investors have a growing awareness that climate transition risks (such as carbon pricing policy) are among the new risk drivers of the financial system. One of the relevant implications of a shock in carbon price is the increase in business costs, which may diminish profitability and affect...

The Simulation-Based Excess Return Model (SERM) offers a simple, practical decision-making method for underwriting real estate development projects. It addresses the shortcomings of discounted cash flow modeling by taking into account the probabilistic distribution of outcomes and is based on...