Cooper and Nyborg (2008) derive a tax-adjusted discount rate formula under a constant proportion leverage policy, investor taxes and risky debt. However, their analysis assumes zero recovery in default. We extend their framework to allow for positive recovery rates. We also allow for differences...

We survey the CFOs of 1500 largest companies from Norway, Denmark and Sweden (500 from each country) about their capital budgeting process with focus on the real options analysis. Only 6% of the respondents use real options, whereas the most used technique, the net present value, is used by 74%...

Investment in renewable energy production in Norway is since the 1st of January 2012 subsidized through a market for green certificates common with Sweden. We study how the prospects of a future green certificates scheme affected the expectations of investors investing in small hydropower plants...