Using Monte Carlo simulation to improve long-term investment decisions

Kelliher, C.F.

Using Monte Carlo simulation to improve long-term investment decisions - 2000 - Appraisal Journal 86(1) January 2000, 44-56(13) .

Describes how current software can formally model and analyse many of the risks involved with long term decisions and concludes that Monte Carlo Simulation may be the best solution as it helps to uncover the complex relationships often associated with uncertain inputs.


MONTE CARLO SIMULATION
RISKS
DISCOUNTED CASHFLOW
MODELS
INVESTMENT APPRAISAL