The effectiveness of evaluating an investment project based on predicting cash flows depends on the uncertainty of its future cash flows. The remoter the cash flows are, the higher the uncertainty is. Because of this,...The effectiveness of evaluating an investment project based on predicting cash flows depends on the uncertainty of its future cash flows. The remoter the cash flows are, the higher the uncertainty is. Because of this, this paper suggests to discount cash flows by applying risky index of time （RIT）. Thus, the discount rate used to discount the distant cash flows is higher that the discount rate used to discount the near cash flows. By this systematic method, the risk caused by the uncertainty of future cash flows can be hedged in making investment decision. To a certain degree, this approach is reasonable in evaluating investment alternatives under uncertainty. Furthermore, the paper puts forward a practical approach on determining RIT in practice.展开更多
Ecological objective promotes local government who is in a reservoir area adopting new environmental policies which encourage firms to save energy and reduce emissions.Based on real option theory,we characterized the ...Ecological objective promotes local government who is in a reservoir area adopting new environmental policies which encourage firms to save energy and reduce emissions.Based on real option theory,we characterized the arrival of new environmental policy as a Poisson jump process.Under the situation that neither the policy arrival time nor contents can be determined,with the real option theory,we focused on problems for firms to decide best investment timing and scale,provided the cumulative probability distribution function of investment timing,and gave a numerical analysis.By analyzing the relationship between policy and investment decision,we found a perverse result that the high subsidy does not always encourage investment all the time,which can be a valuable reference for government to control industry pollution and make reasonable policies.展开更多
The textile industry in China is continuing to expand at a record pace. In June, the output of man-made fiber reached a record of 2.13 million tons, up by20.77% compared with the same time of the previous year, and wi...The textile industry in China is continuing to expand at a record pace. In June, the output of man-made fiber reached a record of 2.13 million tons, up by20.77% compared with the same time of the previous year, and with a rise of 4.53% against May, representing a new all-time monthly output record.展开更多
At the 2016(The 4th)International Summit Forum on Mining Development held on December 8,attending experts said,under dual pressures of meeting peak period of resource demand and confronting industry adjustment,over su...At the 2016(The 4th)International Summit Forum on Mining Development held on December 8,attending experts said,under dual pressures of meeting peak period of resource demand and confronting industry adjustment,over supply of global major mineral products will continue,in the next three to five years prices of mineral products may continue to展开更多
文摘The effectiveness of evaluating an investment project based on predicting cash flows depends on the uncertainty of its future cash flows. The remoter the cash flows are, the higher the uncertainty is. Because of this, this paper suggests to discount cash flows by applying risky index of time （RIT）. Thus, the discount rate used to discount the distant cash flows is higher that the discount rate used to discount the near cash flows. By this systematic method, the risk caused by the uncertainty of future cash flows can be hedged in making investment decision. To a certain degree, this approach is reasonable in evaluating investment alternatives under uncertainty. Furthermore, the paper puts forward a practical approach on determining RIT in practice.
基金Funded by the National Natural Science Fund (No. 71172082)
文摘Ecological objective promotes local government who is in a reservoir area adopting new environmental policies which encourage firms to save energy and reduce emissions.Based on real option theory,we characterized the arrival of new environmental policy as a Poisson jump process.Under the situation that neither the policy arrival time nor contents can be determined,with the real option theory,we focused on problems for firms to decide best investment timing and scale,provided the cumulative probability distribution function of investment timing,and gave a numerical analysis.By analyzing the relationship between policy and investment decision,we found a perverse result that the high subsidy does not always encourage investment all the time,which can be a valuable reference for government to control industry pollution and make reasonable policies.
文摘The textile industry in China is continuing to expand at a record pace. In June, the output of man-made fiber reached a record of 2.13 million tons, up by20.77% compared with the same time of the previous year, and with a rise of 4.53% against May, representing a new all-time monthly output record.
文摘At the 2016(The 4th)International Summit Forum on Mining Development held on December 8,attending experts said,under dual pressures of meeting peak period of resource demand and confronting industry adjustment,over supply of global major mineral products will continue,in the next three to five years prices of mineral products may continue to
