Increasing the variance of the cash flows and other analysis input variables increases the variance of the
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Increasing the variance of the cash flows and other analysis input variables increases the variance of the present worth, which in turn increases the option value. Comment on the potential for abuse by investors wanting to justify an investment by unrealistically assuming large uncertainty, which equates to estimating large cash flow variances.
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Infrastructure Investment An Engineering Perspective
ISBN: 9781466576698
1st Edition
Authors: David G. Carmichael
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