The Application of Monte Carlo Simulation in Present Earning Value Method — Case Study of a Medium Hydropower Station

Abstract:

Processing the parameters overly simplistic will leave space for overestimating or underestimating artificially when we assess the assets of medium and small hydropower stations using present earning value method. And absolute assumptions often affect the adequacy of the assessment results, also the persuasive and credibility. Monte Carlo simulation can determine the wave of parameters in present earning value method, so as to improve the persuasion and credibility of assessment results and reduce the personnel control.

• Periodical: Advanced Materials Research (Volumes 732-733)
• Pages: 731-737
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.732-733.731
• Online since: August 2013
• Authors: Ai Lan Zhang*, Song Jiang Wang
• Keywords: Asset Assessment, Crystal Ball, Monte-Carlo Method (MC-Method), Present Earning Value Method

References

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