THE EVALUATION OF RISK IN MARINE CAPITAL INVESTMENT

Future costs and revenues in capital investment opportunities can seldom be predicted with certainty. As a result, there is usually some doubt as to the outcome of an investment. The chance that an investment may not prove profitable represents the investors risk. This paper considers the problems which uncertainty and risk present in the evaluation of capital investments. Several traditional methods of dealing with uncertainty and risk are considered and shown to be deficient. A relatively new evaluation technique, which utilizes probability theory and computer simulation, is then described and its advantages highlighted. It is suggested that this technique will prove valuable in the evaluation of future marine capital investments.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/1623789
• Authors:
  • Klausner, Robert F
• Publication Date: 1970-10

Media Info

• Features: Figures; References; Tables;
• Pagination: p. 449-464
• Serial:
  • Marine Technology Society Journal
  • Volume: 7
  • Issue Number: 4
  • Publisher: Marine Technology Society
  • ISSN: 0025-3324
  • Serial URL: http://ingentaconnect.com/content/mts/mtsj

Subject/Index Terms

• TRT Terms: Capital investments; Decision making; Investments; Risk analysis; Risk assessment
• Uncontrolled Terms: Investment risk
• Subject Areas: Administration and Management; Design; Marine Transportation; Safety and Human Factors;

Filing Info

• Accession Number: 00007470
• Record Type: Publication
• Files: TRIS
• Created Date: Dec 30 1972 12:00AM