Quantitative Analysis of the Economic Risk of Sugarcane Cultivation for Bioethanol Production:  A Case Study in Brazil

Simões, Danilo; Cervi, Ricardo Ghantous; Batistela, Gislaine Cristina

doi:10.15376/biores.13.3.6497-6509

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“…The project was evaluated using techniques of investments in real assets that can be considered sophisticated, that is, take into account the value of money over time. Thus, we considered the net present value, which according to [27], reflects the absolute monetary value added to the investment (Equation 6).…”

Section: Economic and Financial Evaluationmentioning

confidence: 99%

Management of economic and financial risk of investments in assets for extraction of non-metallic mineral extracts

Martinez¹,

Batistela²,

Simões³

2021

Ingeniare. Rev. chil. ing.

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The investment projects evaluation in real assets is essential for decision making; however, undoubtedly, it is a process whose components have interdependent relationships, which generate uncertainties that can lead to the wrong acceptance or rejection of the investment. This study aimed to apply the Monte Carlo simulation to the risk incorporation into the economic and financial evaluation of an investment project in mineral assets under conditions of uncertainties, with a view to the obtained returns measurement. Thus, the evaluation was based on the projection of discounted cash flow, which allowed the adoption of methods commonly used to evaluate real assets that consider the time value of the money. The economicfinancial risk incorporation was performed using a stochastic and dynamic mathematical model, and the Monte Carlo method was used to generate values from probability distributions. The results showed that the investment project in mineral assets is economically feasible by adding value to investors.

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Section: Economic and Financial Evaluationmentioning

confidence: 99%