Table 8 Simulation results of 300 sample paths in the case of ECA 25%a
From: Investment decisions under uncertainty on LNG-powered vessels for environmental compliance
Sample path j | The optimal year to exercise | Option value ($) | Discount rate | Present value of savings ($) |
|---|---|---|---|---|
1 | 1 | 18,889,317 | 1 | 18,889,317 |
2 | 2 | 8,481,576 | 1.26248 | 6,718,203 |
3 | 0 | 0 | 0 | 0 |
4 | 2 | 7,095,164 | 1.26248 | 5,620,021 |
5 | 0 | 0 | 0 | 0 |
298 | 1 | 15,268,176 | 1 | 15,268,176 |
299 | 1 | 20,818,910 | 1 | 20,818,910 |
300 | 0 | 0 | 0 | 0 |
Simulated option value: | 10,066,289 | |||