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dc.contributor.advisorNguyen, Tom
dc.contributor.authorSmith, Marcus
dc.date.accessioned2018-01-23T02:22:46Z
dc.date.available2018-01-23T02:22:46Z
dc.date.issued2012
dc.identifier.doi10.25904/1912/1175
dc.identifier.urihttp://hdl.handle.net/10072/365800
dc.description.abstractThis study derives an innovative working asset valuation model, termed the RRM (Renewable Resource Model), within the real options methodology to evaluate renewable natural resource assets. The RRM calculates the value of an investment project as well as computing the critical strike prices at which it becomes optimal to exercise various options over the asset, including when to invest (commence or recommission operations), disinvest (temporarily decommission or delay operations) or abandon the asset altogether. An implementation of the RRM including a user-friendly interface is presented. A case study, in which agricultural investments are evaluated, demonstrates the applicability of the model to a real-world setting. This study is expected to make several contributions to the capital budgeting literature, particularly the growing body of research on real options. First, it provides an innovative extension to the seminal academic work of Brennan and Schwartz (1985b) by developing a real options model, the RRM, which is generally applicable to evaluating renewable resource investments. Second, it develops a practical solution and implementation of this model with a view to making it accessible to practitioners. Third, some theoretical work is also presented which equates the RRM with a traditional valuation framework to calculate an exact risk-adjusted discount rate applicable to traditional discounted cash flow valuations for a whole equity firm. Fourth, it demonstrates how the RRM can be applied generally to renewable resource assets using a real-world example.
dc.languageEnglish
dc.publisherGriffith University
dc.publisher.placeBrisbane
dc.rights.copyrightThe author owns the copyright in this thesis, unless stated otherwise.
dc.subject.keywordsOptions investment
dc.subject.keywordsResource assets
dc.subject.keywordsAsset valuation model
dc.subject.keywordsTraditional valuation framework
dc.titleEvaluating Renewable Resource Assets Under Uncertainty: Analytical and Numerical Methods with Case-Study Applications
dc.typeGriffith thesis
gro.facultyGriffith Business School
gro.rights.copyrightThe author owns the copyright in this thesis, unless stated otherwise.
gro.hasfulltextFull Text
dc.contributor.otheradvisorHarris, Geoffrey
dc.contributor.otheradvisorLiu, Benjamin
dc.rights.accessRightsPublic
gro.identifier.gurtIDgu1346041734186
gro.source.ADTshelfnoADT0
gro.source.GURTshelfnoGURT1447
gro.thesis.degreelevelThesis (PhD Doctorate)
gro.thesis.degreeprogramDoctor of Philosophy (PhD)
gro.departmentGriffith Business School
gro.griffith.authorSmith, Marcus


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