Purpose – The purpose of this paper is to apply a numerical simulation of stochastic processes to the problem of real estate investment appraisal. Design/methodology/approach – These uncertain operating costs are integrated into an enhanced dynamic simulation. To model the dynamics in the...

this paper focuses on dynamic financial modelling of recurring cash flow items in PPP projects in operating stage and on risks associated with the volatility of these cash flows. As we concentrate on so-called government-pays schemes, only cash-outflows are considered, such as operating costs,...