"Abandonment Values and Abandonment Decisions: A Clarification." Journal of Finance.
Linking formal financial abandonment models developed by Robichek and Van Home (1967, 577-89), Dyl and Long (1969, 88-95), and Joy (1976, 1225-28) to criminal behavior models created by Becker (1968, 169-217) and Ehrlich (1973, 521-565), Cloninger (1981, 494-504) shows that abandonment is financially attractive if the abandonment value (insurance) exceeds the net present value of expected cash flows over the remaining expected life of an asset.
"Abandonment Value and Capital Budgeting: Comment." Journal of Finance.
"Abandonment Value and Capital Budgeting." Journal of Finance.
"Abandonment Values and Abandonment Decisions: A Clarification," Journal of Finance, 40: 1225-1228.
For example, Robichek and Van Horne (1967) show that a project should be abandoned in the first period when the abandonment value exceeds the present value of the projects future cash flows from operations, discounted at the cost of capital.
"Abandonment Value and Capital Budgeting: Comment," Journal of Finance, 24: 88-95.
Long, "Abandonment Value and Capital Budgeting: Comment," Journal of Finance (March 1969), pp.
Van Horne, "Abandonment Value and Capital Budgeting," Journal of Finance (September 1967), pp.