Corpus ID: 166996671

Making Real Options Real

@inproceedings{Copeland2005MakingRO,
  title={Making Real Options Real},
  author={Thomas E. Copeland},
  year={2005}
}
  • Thomas E. Copeland
  • Published 2005
  • Business
  • NPV and economic profit (EP) ignore an important reality: business decisions in many industries and situations can be implemented flexibly through deferral, abandonment, expansion, or in a series of stages that in effect constitute real options. Recognizing real options can help decision makers assess the profitability of new projects and understand whether and when to proceed with the later phases of projects that have already been initiated, particularly when they are close to breakeven. Real… CONTINUE READING

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