Bidding for the S.S. Kuniang
Published Online:1 Apr 1984https://doi.org/10.1287/inte.14.2.17
Abstract
New England Electric was pondering whether to bid for the salvage rights to a grounded ship, the S.S. Kuniang. The ship could be repaired and used to haul coal for the utility's power stations, recently converted from oil. A bid was determined using a decision tree, a simulation, and net present value calculations.
