Dissertation/Thesis Abstract

Stochastic simulation model of the apartment building investment project
by Atthayuwat, Sutthira, M.S., California State University, Long Beach, 2010, 40; 1486447
Abstract (Summary)

The traditional deterministic method for analysis of investment evaluation seems to provide incomplete information about the uncertainties of the real business climate. This paper studies the financial viability of a proposed apartment building project using the discounted cash flow (DCF) model to evaluate the single point estimates of financial performance measures, and then applies the Monte Carlo simulation model to incorporate the uncertainty of input variables into the DCF model. The results of the simulation model provide the probability distribution of the outcomes, suggesting that the central values of financial indicators are lower than those of the deterministic model. The performance measures of the projects are found to be most sensitive to the growth of the market rent, loan rate, and construction costs.

Indexing (document details)
Advisor: Safer, Alan
School: California State University, Long Beach
School Location: United States -- California
Source: MAI 49/01M, Masters Abstracts International
Subjects: Applied Mathematics, Statistics
Publication Number: 1486447
ISBN: 978-1-124-24746-5
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