http://valuationengineering.com/blog3 Discussions related to valuation from a mathematical and engineering perspective. Fri, 28 Dec 2007 08:10:46 +0000 http://backend.userland.com/rss092 en The use of options is an extension to traditional NPV for calculating what is termed "Expanded" or "Strategic NPV."   In both approaches the point of reference is always the current point in time or the effective date of appraisal.  Both approaches are therefore limited by current point in time perceptions of future risk.    The ... http://valuationengineering.com/blog3/2007/12/26/option-value-calculations/ It has been my experience that the best adjustments for appraisal with a limited number of sales transactions in a complex real estate environment such as the San Francisco Bay Area can be obtained using multiple adaptive regression splines.   My experience has been primarily based on using MARS (r) from Salford Systems.  However, with ... http://valuationengineering.com/blog3/2007/12/26/earth-an-r-language-package-for-multiple-adaptive-regression-splines/