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Financing of Productive Investments: A Model with Coordinated Scenarios

  • Carlos LassalaEmail author
  • Manuel Mocholí
  • Valentín Navarro
Conference paper
  • 717 Downloads
Part of the Lecture Notes in Business Information Processing book series (LNBIP, volume 222)

Abstract

This research raises a company that knows the cash requirements to purchase capital equipments in order to satisfy the demand for the products of each of the proposed scenarios. The company is negotiating with credit institutions a series of loans at different interest rates. Also, the company can make capital increases. A model focused on the financial needs using scenarios allows us to combine funding sources to cover the costs of the acquisition of production equipment to meet the demand for each scenario. This combination remunerates own financing, settles interest and repays the borrowed capital. The results indicate that the model is robust and minimizes the financial cost of a possible combination of external and internal sources in each possible scenario.

Keywords

Financing Productive investment Scenario management Linear programming Robust model 

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Copyright information

© Springer International Publishing Switzerland 2015

Authors and Affiliations

  • Carlos Lassala
    • 1
    Email author
  • Manuel Mocholí
    • 2
  • Valentín Navarro
    • 1
  1. 1.Department of Corporate FinanceUniversitat de ValenciaValenciaSpain
  2. 2.Department of Mathematics for Economics and BusinessUniversitat deValenciaValenciaSpain

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