Description
Book SynopsisEstablished Deterministic Investment Appraisal versus Uncertainty in Investment
When it comes to investing in an infrastructure project, the conventional approach is to evaluate risk through a deterministic approach. Infrastructure Investment: An Engineering Perspective, however, takes on uncertainty in investment. Of interest to engineering consultants, government departments, financial institutions, or anyone involved in investment in infrastructure, this text provides the necessary tools for the analysis and appraisal of investment in infrastructure and other assets with uncertain futures.
It factors in the finance and engineering of assets such as roads, buildings, bridges, dams, pipelines, railways, ports, seawalls, wastewater treatment facilities, and addresses future demand, operating costs, maintenance costs, and other lifetime and investment parameters in both finan
Table of Contents
Introduction. Part I. Deterministic: Benefits, costs and time value. Appraisal. Appraisal: Extensions and comments. Part II. Probabilistic: Background. Probabilistic cash flows. Real options. Real option types and examples. Financial options. Probabilistic cash flows and interest rates. Markov chains and investment analysis. Bibliography and references.
