Investment Decision Making Through Risk Analysis

• Published in: Journal of business & entrepreneurship Vol. 3; no. 1; p. 115
• Main Authors: Willis, T Hillman, Riner, Sam, Aby, Carroll D
• Format: Journal Article
• Language: English
• Published: Durant Association for Small Business and Entrepreneurship 01.03.1991
• Subjects: Cash flow; Decision making; Decision trees; Drilling; Investment policy; Management decisions; Monte Carlo simulation; Oil exploration; Oil fields; Oil wells; Payback periods; Prices; Probability distribution; Risk assessment; Studies

Business owners, managers, and entrepreneurs are frequently faced with investment decisions. Capital investment opportunities, new product introduction, make or buy decisions, and portfolio diversity typify commonly encountered choices. This paper examines how a simulation model is used to perform r...