Project valuation using real options : a practitioner's guide
- Delhi Cengage 2014
- xi, 234 p. 23 cm ; Pbk
Rs.499/-
1. Introduction 2. Traditional Project Valuation Tools 3. Challenges with Traditional Tools 4. Real Options: The New Tool 5. ROA Calculation 6. ROA Application 7. Simple Options 8. Advanced Options 9. Real Options in Real World
Business leaders are frequently faced with investment decisions on new and ongoing projects. The challenge lies in deciding what projects to choose, expand, contract, defer, or abandon, and which method of valuation to use is the key tool in the process. This title presents a step-by-step, practical approach to real options valuation to make it easily understandable by practitioners as well as senior management. This systematic approach to project valuation helps you minimize upfront investment risks, exercise flexibility in decision making, and maximize the returns. Whereas the traditional decision tools such as discounted cash flow/net present value (DCF/NPV) analysis assume a fixed path ahead, real options analysis offers more flexible strategies. Considered one of the greatest innovations of modern finance, the real options approach is based on Nobel-prize winning work by three MIT economists, Fischer Black, Robert Merton, and Myron Scholes.
9788131508961
Project management Real options (Finance) Investments