1. Open Access Kent State
  2. Elasticity as a Measure of Project Uncertainty
Author(s)
Abstract

We develop an indicator of project uncertainty via the sensitivity of the IRR to any assumption regarding which performance scenario for the project is most relevant. The most relevant scenario represents the performance (into the future) that we should project (as compared to any we actually project). Our indicator is a measure one can regard as a form of absolute value of elasticity that we define as the ratio of an expected absolute value change in IRR, over differing scenarios, to a location parameter.
Format
Article
Publication Date
2011-01-01
Publication Title
Emerald Group Publishing Limited
Volume
27
First Page
273
Last Page
281
Keywords
Subject
Community
Department of Finance
Permalink https://oaks.kent.edu/finpubs/8
Dennis, S., & Smith, W. (2011). Elasticity as a Measure of Project Uncertainty. Emerald Group Publishing Limited. https://oaks.kent.edu/node/1794
Dennis, Steven, and William Smith. 2011. “Elasticity As a Measure of Project Uncertainty”. Emerald Group Publishing Limited. https://oaks.kent.edu/node/1794.
Dennis, S., and W. Smith. Elasticity As a Measure of Project Uncertainty. Emerald Group Publishing Limited, 1 Jan. 2011, https://oaks.kent.edu/node/1794.