Use of sensitivity analysis in build-own-operate-transfer project evaluation
Use of sensitivity analysis in build-own-operate-transfer project evaluation
Sensitivity analysis has long been recognised as a useful analytical procedure when applied to the financial evaluation of capital projects. Whilst the technique cannot evaluate risk per se, it is nevertheless considered useful in identifying those variables which contribute most to the overall riskiness of an investment, and in respect of which most attempts at control must therefore be directed. The paper presents findings from a survey of the use of sensitivity analysis by the various parties involved in build-own-operate-transfer contracts to illustrate the application of the technique at the practical level to assist in the risk-management process associated with major projects. Both the usefulness and limitations of the technique are thereby identified.
sensitivity analysis, risk, build-own-operate-transfer projects
239-246
Woodward, David G.
897785d2-abda-457d-bd5b-6fb3bbed65cc
1995
Woodward, David G.
897785d2-abda-457d-bd5b-6fb3bbed65cc
Woodward, David G.
(1995)
Use of sensitivity analysis in build-own-operate-transfer project evaluation.
International Journal of Project Management, 13 (4), .
(doi:10.1016/0263-7863(95)00016-J).
Abstract
Sensitivity analysis has long been recognised as a useful analytical procedure when applied to the financial evaluation of capital projects. Whilst the technique cannot evaluate risk per se, it is nevertheless considered useful in identifying those variables which contribute most to the overall riskiness of an investment, and in respect of which most attempts at control must therefore be directed. The paper presents findings from a survey of the use of sensitivity analysis by the various parties involved in build-own-operate-transfer contracts to illustrate the application of the technique at the practical level to assist in the risk-management process associated with major projects. Both the usefulness and limitations of the technique are thereby identified.
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Published date: 1995
Keywords:
sensitivity analysis, risk, build-own-operate-transfer projects
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Local EPrints ID: 36665
URI: http://eprints.soton.ac.uk/id/eprint/36665
ISSN: 0263-7863
PURE UUID: 9ca0b985-ef80-4c6b-a4d9-3eb7ae491907
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Date deposited: 08 Mar 2007
Last modified: 15 Mar 2024 07:57
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Author:
David G. Woodward
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