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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
  1. aECA 25% means a ship operates 25% inside ECAs annually