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A Markov Renewal Model for Valuating Cash Conversion Systems
Authors: Weiwei Chen, B. Melamed, Tonghua Lin, B. Sopranzetti
Status: Second-round R&R at European Journal of Operational Research
Valuation
Operations–Finance Interface
Stochastic Modeling
Valuing a new product or product line is difficult when there is no financial history to rely on. This project models the cycle through which cash is invested in inventory, converted into sales, and collected as payments, and uses it to value such systems from their operational and financial parameters.