Volume 29, Issue 2 (IJIEPR 2018)                   IJIEPR 2018, 29(2): 133-146 | Back to browse issues page

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Jahani A, Mohammadi P, Mashreghi H. Studying Risk Effect in Evaluating the Financing Methods of New Technology-Based Firms. IJIEPR 2018; 29 (2) :133-146
URL: http://ijiepr.iust.ac.ir/article-1-803-en.html
Studying Risk Effect in Evaluating the Financing Methods of New Technology-Based Firms
Arezoo Jahani1 , Parastoo Mohammadi 2, Hamid Mashreghi3
1- Tarbiat Modares
2- Tarbiat Modares , p.mohammadi@modares.ac.ir
3- Babol Noshirvani University of Technology
Abstract:   (5110 Views)
Innovation & Prosperity Fund (IPfund) in Iran as a governmental organization aims to develop new technology-based firms (NTBF) by its available resources through financing these firms. The innovative projects which refer to IPfund for financing are in a stage which can receive both fixed rate facilities and partnership in the projects, i.e. profit loss sharing (PLS). Since this fund must protect its initial and real value of its capital against inflation rate, therefore, this study aims to examine the suitable financing methods with considering risk. For this purpose we study on risk assessment models to see how to use risk adjusted net present value for knowledge based projects. On this basis, the NPV of a project has been analyzed by taking into account the risk variables (sales revenue and the cost of fixed investment) and using Monte Carlo simulation. The results indicate that in most cases for a project, the risk adjusted NPV in partnership scenario is more than the other scenario. In addition to, partnership in projects which demand for industrial production facilities is preferable for the IPfund than projects calling for working capital.
Keywords: Risk Analysis, Risk Adjusted Net Present Value, Monte Carlo Simulation, Fixed Rate Facilities, Partnership, Investment Evaluation.
Full-Text [PDF 658 kb]   (2490 Downloads)    
- Examining the suitable financing methods with considering risk for New Technology Based Firms (NTBFs)
- Using risk adjusted net present value for knowledge-based projects.
- Presenting partnership scenario for financing NTBFs.

Type of Study: Research | Subject: Engineering Economics
Received: 2017/12/13 | Accepted: 2018/05/20 | Published: 2018/05/20
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