Management of economic and financial risk of investments in assets for extraction of non-metallic mineral extracts

Martinez, Izabelle Martinez [UNESP]; Batistela, Gislaine Cristina [UNESP]; Simões, Danilo [UNESP]

Management of economic and financial risk of investments in assets for extraction of non-metallic mineral extracts

Data

2021-12-01

Autores

Martinez, Izabelle Martinez

Batistela, Gislaine Cristina

Simões, Danilo

Tipo

Artigo

Resumo

The investment projects evaluation in real assets is essential for decision making; however, undoubtedly, it is a process whose components have interdependent relationships, which generate uncertainties that can lead to the wrong acceptance or rejection of the investment. This study aimed to apply the Monte Carlo simulation to the risk incorporation into the economic and financial evaluation of an investment project in mineral assets under conditions of uncertainties, with a view to the obtained returns measurement. Thus, the evaluation was based on the projection of discounted cash flow, which allowed the adoption of methods commonly used to evaluate real assets that consider the time value of the money. The economic-financial risk incorporation was performed using a stochastic and dynamic mathematical model, and the Monte Carlo method was used to generate values from probability distributions. The results showed that the investment project in mineral assets is economically feasible by adding value to investors.