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Appraising Value and Risk of Commercial Assets: Stratifying the Modified Internal Rate of Return in an American and European Put Option Analysis

Advances in Business Research

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Title Appraising Value and Risk of Commercial Assets: Stratifying the Modified Internal Rate of Return in an American and European Put Option Analysis
 
Creator Lifland, Steven; High Point University
 
Subject Finance
Finance; asset valuation; put option; commercial assets; rate of return
 
Description In comparative project valuations, there is an assumption of equality of risk across investments. Two commercial metro office buildlings are valued according to both a European and American Put Option, broadening the number of acceptable actions for investors. This paper presents a technique that enhances the final investment decision process. Specifically, this paper posits that, superior to the Internal Rate of Return (IRR), stratifying the Modifited Internal Rate of Return (MIRR) provides another layer of risk analysis thta facilitates project comparisons even where other techniques have led to conflicting results.
 
Publisher Tarleton State University and the University of Arkansas - Fort Smith
 
Contributor —
 
Date 2010-12-13
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Articles
Quantitative; analytical
 
Format application/pdf
 
Identifier http://journals.sfu.ca/abr/index.php/abr/article/view/9
 
Source Advances in Business Research; Vol 1, No 1 (2010); 15-25
 
Language eng
 
Relation http://journals.sfu.ca/abr/index.php/abr/article/view/9/4
 
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