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Simple Boiler

 
 
 
 
 
provisdom

by provisdom

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Description

Create a dynamic operating strategy that maximizes shareholder value. Choice between an industrial boiler which burns gas, oil, or both. For the boiler which burns both fuels, illustrates the use of market-traded assets (oil and gas) and the effects of switching costs in choosing the optimal fuel strategy over the boiler lifetime.

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Date Added

09/26/2008
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