WIT Press

Application Of Sensitivity Analysis In Shipyard Investment Projects

Price

Free (open access)

Paper DOI

10.2495/MT010331

Volume

53

Pages

8

Published

2001

Size

677 kb

Author(s)

R. Kaynak, G. E. Okudan and M. Guner

Abstract

Application of sensitivity analysis in shipyard investment projects R. Kaynak*, G. E. Okudan*, M. Guner^ ^Department of Business Administration, Gebze Institute of Technology, Kocaeli - Turkey. ^Department of Naval Architecture Engineering, Yildiz Technical University, Istanbul - Turkey. Abstract Investing on shipyard and shipbuilding requires considerable amount of expenditure. This expenditure is expected to produce income after the completion of the investment. In general, income is directly proportional to risk. Risk yields either a high income or a loss. Therefore, critical variables, which may have an affect on the investment outcome should be determined, and further analyzed. Sensitivity analysis is one of the tools used for this purpose. This work presents a sensitivity analysis application on inflation rate for a shipyard investment project where inflation values experienced in Turkey over two decades were used. 1 Introduction Sensitivity analys

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