Hostname: page-component-586b7cd67f-2brh9 Total loading time: 0 Render date: 2024-11-29T17:01:48.258Z Has data issue: false hasContentIssue false
  • English
  • Français

Capital Investment under Uncertainty with Abandonment Options

Published online by Cambridge University Press:  19 October 2009

Charles P. Bonini
Get access Rights & Permissions [Opens in a new window]

Extract

This paper is an analytic treatment of the abandonment decision in capital investment analysis. It provides a methodology which has application in obtaining better estimates for project value and risk.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 12 , Issue 1 , March 1977 , pp. 39 - 54
Copyright
Copyright © School of Business Administration, University of Washington 1977

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

[1]HansenMorris, H. Morris, H.; Hurwitz, William N.; and Madow, William G.. Sample Survey Methods and Theory, Vol. 2. New York: John Wiley, 1953.Google Scholar
[2]Hertz, David B. “Risk Analysis in Capital Investment.” Harvard Business Review (January–February 1964), pp. 95–106.Google Scholar
[3]Hillier, Frederick S. “The Derivation of Probabilistic Information for Evaluation of Risky Investments.” Management Science, Vol. 9, No. 3 (April 1963), pp. 443–457.Google Scholar
[4]Hillier, Frederick S.The Evaluation of Risky Interrelated Investments. Amsterdam: North Holland Publishing Company, 1969.Google Scholar
[5]Robichek, Alexander A., and Van Horne, James C.. “Abandonment Value and Capital Budgeting.” Journal of Finance, Vol. 22, No. 4 (December 1967), pp. 577–589.Google Scholar
[6]Robichek, Alexander A. “Reply.” Journal of Finance, Vol. 24, No. 1 (March 1969), pp. 96–97.CrossRefGoogle Scholar
[7]Van Horne, James C. “Capital Budgeting under Conditions of Uncertainty as to Project Life.” The Engineering Economist, Vol. 17, No. 3 (Spring 1972), pp. 189–199.CrossRefGoogle Scholar
[8]Van Horne, James C.Financial Management and Policy, 3rd ed.Englewood Cliffs, N.J.: Prentice-Hall, 1974.Google Scholar
[9]Wagner, Harvey M.Principles of Operations Research. Englewood Cliffs, N.J.: Prentice-Hall, 1969.Google Scholar