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J4  2005, Vol. 2 Issue (5): 586-    DOI:
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Dynamic Selection of Postponable Investment Projects with Uncertain Interest-rate
 HUANG Wei-Lai, HUANG Song, ZHANG Zi-Gang
Huazhong University of Science and Technology,Wuhan,China

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Abstract  

According to arbitrage-free interest rate model,some methods for determining the discount function and the short rate were explored after describing binomial event tree.Then other methods for computing net present value and adjusted net present value of an investment project were also studied on basis of the node of binomial event tree with uncertain interest-rate.Finally a method for a dynamic selection of postponable investment project with uncertain interest-rate was proposed and illustrated with an example.

Key wordsuncertainty      event tree      investment project      dynamic selection     
Received: 21 September 2004     
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HUANG Wei-Lai
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HUANG Wei-Lai,HUANG Song,ZHANG Zi-Gang. Dynamic Selection of Postponable Investment Projects with Uncertain Interest-rate[J]. J4, 2005, 2(5): 586-.
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http://manu68.magtech.com.cn/Jwk_glxb/EN/     OR     http://manu68.magtech.com.cn/Jwk_glxb/EN/Y2005/V2/I5/586
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