In recent years, managers have turned their attention to the ways increasing the value of their companies. A number of competing measures have been developed and marketed by investment and consulting firms. This paper considers the ways in which value can be created or destroyed in a firm and looks at how to calculate the cost of capital used to measure the opportunity cost of investing funds in one particular business instead of others with equivalent risk. Next, we have a look at the four most widely used value enhancement measures including Economic Value Added, Cash Flow Return on Investment, Market Value Added, Cash Value Added and use an example to think of where these approaches yield similar results and where differences might occur. In conclusion, we summarize the new or unique points in these competing measures, establish the information they can give and explain how to use it when managing and creating shareholder value.
Abstract. In this paper the methodology and uses of Monte Carlo simulation technique in the evaluation of investment projects are presented to analyse and assess the risk. The first part presents the theoretical background of Monte Carlo analysis in various process stages. The second part examines the interpretation of the results generated by the application of project formulation, financial and risk analysis including investment decision criteria and measures of risk based on the expected NPV value concept. The final part draws some conclusions regarding the usefulness and limitations of Monte Carlo analysis in investment appraisal. Santrauka. Ðiame straipsnyje pateiktos Monte Karlo metodo taikymo galimybës, siekiant iðanalizuoti ir ávertinti investiciniø projektø rizikà. Pirmoje straipsnio dalyje analizuojami teoriniai Monte Karlo imitacinio modeliavimo metodo aspektai, apraðomi ðio metodo taikymo investiciniø projektø rizikai vertinti etapai. Antroje straipsnio dalyje ðis metodas pritaikytas realaus investicinio projekto rizikai vertinti. Pateiktas galutinis sprendimas dël investavimo á projektà, paremtas ne tik finansinës analizës, bet ir rizikos analizës, iðreikðtos tikëtinàja grynosios dabartinës vertës koncepcija, rezultatais. Straipsnis apibendrintas pateikiant Monte Karlo metodo taikymo investiciniams sprendimams priimti privalumus ir trûkumus.Raktaþodþiai: investiciniai projektai, rizikos analizë, grynoji dabartinë vertë, Monte Karlo imitacinio modeliavimo metodas.
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