This tidal stream energy industry has to date been comprised of small demonstrator projects
made up of one to a four turbines. However, there are currently plans to expand to …

Engineering economics is located at the intersection of the science of economics and
engineering practice, which means it attracts the attention of both fields. Engineering …

Traditionally, present worth is computed with a single interest rate. However, the real options
literature includes examples where “first” costs are discounted using a continuous risk-free …

With this study, we aim to increase understanding of the insights that real option analysis
(ROA) has to offer, particularly in comparison to dynamic decision tree analysis (DTA). We …

Proposed projects are often justified financially by using traditional discounted cash flow
tools such as net present value and internal rate of return. These methods have been …

The discounting cash flow (DCF) technique is the most popular approach for valuing firms'
projects. Basically, it consists of discounting the values of the forecasted future cash flows by …

A Real Option Analysis is performed on the investment of an integrated utility system within a
chemical cluster in Stenungsund, Sweden. The utility system investment is an energy saving …