000 01462nab a2200181 4500
005 20260520001936.0
008 260224s2010 xxu
245 0 0 _aFinancial factor models for correlated inputs in the simulation of project cash flows
260 _a
_b
_cdic. 2010
270 _a26/05/2011 ; 26/05/2011
300 _a3 p. ; 54-57
520 _aTranscripción del resumen del autor: In this paper we discuss a coherent and consistent framework for valuation of large-scale projects—the risk-neutral valuation scheme. This valuation framework deals with the uncertainties at the source instead of risk-adjusting the discounted cash flows. The uncertainties are categorized into two groups; market (public) uncertainties and technical (private) uncertainties. Some of the uncertainties are dependent on each other and ignoring such inter-dependencies will affect the valuation results. However, for problems with a large number of sources of uncertainties, the assessment of inter-dependencies becomes complex and burdensome. In this paper, we introduce financial factor models to simplify the correlation assessment problem. The factor models can be integrated with the logic of risk-neutral valuation and will form a consistent approach to valuation.
581 _a1-2
773 0 _tJournal of Petroleum Science & Engineering
_g75
942 _cARTICULO
100 1 _aJafarizadeh, Babak
_950012
999 _c182020
_d182020