rn, S. "Managing Investments Under Price Uncertainty: From Last Chance to Wait and See Strategies." Financial Management, 19 (Autumn 1990):65 83.
This article discusses the problem faced by both borrowers and lenders in a highly volatile price environment. Under such conditions of uncertainty, it is unusually difficult to project the monetary values for various components of a deal for future periods. The authors of the articles discuss various strategies which may be followed by both borrowers and lenders in such situations. The authors also discuss the advantages and disadvantages associated with each strategy.
6. Bradley, D. M. "The Capitalization Rate, The Discount Rate, and Inflation." Appraisal Journal, 57 (April 1989): 237 243.
This article is concerned with the potential effects of inflation on both capitalization rates and discount rates employed in the evaluation, both pre and post , of a project finance deal. Inflation typically causes nominal, as opposed to real, interest rates to rise; thus, debt interest income rises. Debt interest
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