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Investment appraisal using quantitative risk analysis

Tehler, Henrik LU (2002) In Journal of Hazardous Materials 93(1). p.77-91
Abstract
Investment appraisal concerned with investments in fire safety systems is discussed. Particular attention is directed at evaluating, in terms of the Bayesian decision theory, the risk reduction that investment in a fire safety system involves. It is shown how the monetary value of the change from a building design without any specific fire protection system to one including such a system can be estimated by use of quantitative risk analysis, the results of which are expressed in terms of a Risk-adjusted net present value. This represents the intrinsic monetary value of investing in the fire safety system. The method suggested is exemplified by a case study performed in an Avesta Sheffield factory. (C) 2002 Elsevier Science B.V. All rights... (More)
Investment appraisal concerned with investments in fire safety systems is discussed. Particular attention is directed at evaluating, in terms of the Bayesian decision theory, the risk reduction that investment in a fire safety system involves. It is shown how the monetary value of the change from a building design without any specific fire protection system to one including such a system can be estimated by use of quantitative risk analysis, the results of which are expressed in terms of a Risk-adjusted net present value. This represents the intrinsic monetary value of investing in the fire safety system. The method suggested is exemplified by a case study performed in an Avesta Sheffield factory. (C) 2002 Elsevier Science B.V. All rights reserved. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
decision analysis, investment appraisal, fire, Bayesian updating, protection, risk analysis
in
Journal of Hazardous Materials
volume
93
issue
1
pages
77 - 91
publisher
Elsevier
external identifiers
  • pmid:12062955
  • wos:000177016400007
  • scopus:0036644134
ISSN
1873-3336
DOI
10.1016/S0304-3894(02)00040-7
language
English
LU publication?
yes
id
12001808-afdd-4f3f-ada4-bcd5e0601687 (old id 332687)
date added to LUP
2007-10-23 07:32:40
date last changed
2017-01-01 05:00:56
@article{12001808-afdd-4f3f-ada4-bcd5e0601687,
  abstract     = {Investment appraisal concerned with investments in fire safety systems is discussed. Particular attention is directed at evaluating, in terms of the Bayesian decision theory, the risk reduction that investment in a fire safety system involves. It is shown how the monetary value of the change from a building design without any specific fire protection system to one including such a system can be estimated by use of quantitative risk analysis, the results of which are expressed in terms of a Risk-adjusted net present value. This represents the intrinsic monetary value of investing in the fire safety system. The method suggested is exemplified by a case study performed in an Avesta Sheffield factory. (C) 2002 Elsevier Science B.V. All rights reserved.},
  author       = {Tehler, Henrik},
  issn         = {1873-3336},
  keyword      = {decision analysis,investment appraisal,fire,Bayesian updating,protection,risk analysis},
  language     = {eng},
  number       = {1},
  pages        = {77--91},
  publisher    = {Elsevier},
  series       = {Journal of Hazardous Materials},
  title        = {Investment appraisal using quantitative risk analysis},
  url          = {http://dx.doi.org/10.1016/S0304-3894(02)00040-7},
  volume       = {93},
  year         = {2002},
}