Risk Sensitive Value Measure Method: A New Method Of Project Evaluation
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Home > Business and Economics > Risk Sensitive Value Measure Method: A New Method Of Project Evaluation: (3 Advances In Statistics, Probability And Actuarial Science)
Risk Sensitive Value Measure Method: A New Method Of Project Evaluation: (3 Advances In Statistics, Probability And Actuarial Science)

Risk Sensitive Value Measure Method: A New Method Of Project Evaluation: (3 Advances In Statistics, Probability And Actuarial Science)


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About the Book

What is the most effective method for project evaluation? While the standard Net Present Value (NPV) method is widely used for its simplicity, it has notable limitations: it insufficiently accounts for the random complexity of cash flows and fails to capture the flexibility inherent in project execution.This book introduces an innovative evaluation method designed to address these shortcomings. It begins by analyzing the evaluation of random variables, representing the Random Present Values (RPVs) of cash flows, and identifies the optimal evaluation functional for RPVs. Through this analysis, the concave monetary value measure — or concave monetary utility function — emerges as the most suitable tool.The study is then extended to dynamic value measures, leading to the conclusion that the risk-sensitive value measure is the most robust approach for project evaluation. Practical applications of this method are thoroughly explored, offering valuable insights for tackling real-world project evaluation challenges.


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Product Details
  • ISBN-13: 9789819808557
  • Publisher: World Scientific Publishing Co Pte Ltd
  • Publisher Imprint: World Scientific Publishing Co Pte Ltd
  • Language: English
  • Returnable: Y
  • ISBN-10: 9819808553
  • Publisher Date: 01 Aug 2025
  • Binding: Hardback
  • No of Pages: 284
  • Series Title: 3 Advances In Statistics, Probability And Actuarial Science


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