Image from Google Jackets

Valuation by simulation of cash flow

By: Language: English Series: Land & Minerals Surveying ; 8(2) February 1990, 70-77(8)Publication details: 1990Subject(s): Summary: Paper based on research carried out at Nottingham Polytechnic. It argues that traditional methods of investment valuation, those based on Years Purchase are insufficiently objective. They only provide a single estimate of an investment`s value which does not show the risk to which the investment is exposed. Simulations using probability models as an alternative method that illustrates the complete range of possible outcomes.

Paper based on research carried out at Nottingham Polytechnic. It argues that traditional methods of investment valuation, those based on Years Purchase are insufficiently objective. They only provide a single estimate of an investment`s value which does not show the risk to which the investment is exposed. Simulations using probability models as an alternative method that illustrates the complete range of possible outcomes.