Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/239910 
Year of Publication: 
2019
Citation: 
[Journal:] Administrative Sciences [ISSN:] 2076-3387 [Volume:] 9 [Issue:] 1 [Publisher:] MDPI [Place:] Basel [Year:] 2019 [Pages:] 1-14
Publisher: 
MDPI, Basel
Abstract: 
In this research, the concept of Duration with a new application in project management has been defined. The Duration of each project provides the project manager with a combined measure containing concepts of return, cost and time of the project. Further in this article, the changes in project return, based on different assumptions such as discount rate, have been examined. To examine the effect of the changes in these factors, the Monte Carlo simulation has been used. The relationship between these factors is nonlinear which reflects the great importance of investment on appropriate risk management systems. The data from a set of construction projects have been used in order to verify the results of this study. Similar relationships can be expected to exist in other industries as well.
Subjects: 
project duration
convexity
discount rate risk
reinvestment risk
risk measures
monte carlo simulation
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article
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