Towards Sustainable Investments: Integrating Embodied Carbon Reduction in Investment Decision-Making by Using a Discounted Cash Flow Model

To combat global warming, it is crucial to eliminate CO2 emissions by 2050, especially since a third of global emissions are attributed to the building and construction industry. This sector's carbon footprint comprises operational emissions from daily activities and embodied carbon throughout a building's lifecycle. However, as buildings become...

Multi Target XGBoost Cash Flow Prediction: An Efficient Machine Learning Algorithm For Future Liability Projections

Insurers are required to have buffers to be able to meet financial obligations that result from their portfolios, which are determined using a cash flow model. The input of such a cash flow model consists among of things, of two mortality tables and the portfolio of an insurer. Mortality rates are simulated using the Lee-Carter model. These...

Conceptualizing and measuring the firm-level transition risk in the auto sector

Auto sector corporations are increasingly disclosing climate targets given the need to transition, which presents risks. However, institutional investors have yet to develop knowledge in climate science to assess the risk concretely. Instead, they rely on qualitative measurement such as the Environmental, Social, Governance factors for climate...

Probabilistic life cycle cash flow forecasting with price uncertainty following a geometric Brownian motion

In the Netherlands, probabilistic life cycle cash flow forecasting for infrastructures has gained attention in the past decennium. Frequencies, volume and unit prices of life cycle activities are treated as uncertainty variables for which an expert-based triangular distribution is assumed. The current research observes the absence of time...

The Dynamical Behaviour and Control of an Enterprise: Firm and Consumer as the System, Management as the Controller

This thesis develops a method to forecast the cash flows that determine the value of an enterprise. From a control engineers perspective, three stages arise to develop such a method: the research, the system and the control part. The research part presents the results of a control theoretic analysis of PricewaterhouseCoopers’ (PwC) valuation...

Cut-off Grade Based Sublevel Stope Mine Optimization: Introduction and evaluation of an optimization approach and method for grade risk quantification

The aim of this research project was to introduce and evaluate an optimization approach for sublevel stope mine optimization using the AMIRA Stope Optimizer that includes grade-risk quantification and can be used by Boliden engineers for future mine planning and economic assesment. It has long been realized that mining simply every part of an...

A Cash-Flow Analysis and Profitability Study on a Peer-Group of Mining Companies

In this study a cash-flow analysis is done in order to establish the cash sources and sinks of a peer group of mining companies in the iron ore sector. The peer-group ranges from junior companies to major mining companies. The study also looked in to the performance and profitability of the peer group using ROCE and share prices as indicators....

Investigating the Relevance of the Pecking Order Theory and the Agency Costs of Free Cash Flow Theory in the Eyes of Investors

Nowadays companies hold increased amounts of cash (Dittmar 2008; Schauten, van Dijk and Van der Waal 2008). Literature gives two contradictory theories that may influence the valuation of these cash holdings by investors in the market. The pecking order theory predicts that managers have more information about the state of the firm than outside...

Alluvial Mining Operations: A Sustainable Guideline and Cash Flow Evaluation Model

The past five decades an unparalleled growth in societal demand for raw materials occurred which led to sometimes-irreversible negative impacts on the earth’s ecological system. Consequently sustainable issues are of growing importance in the world and this awareness is present among customers of IHC Merwede B.V. (IHC), their customers start to...