• Corpus ID: 166996671

Making Real Options Real

@inproceedings{Copeland1998MakingRO,
  title={Making Real Options Real},
  author={Thomas E. Copeland},
  year={1998}
}
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… 
Real Options in Capital Budgeting. Pricing the Option to Delay and the Option to Abandon a Project
Traditional discounted cash-flows method for assessing projects assumes that investment decision is an irreversible one, which is not correct. Managers can and must reconsider their initial decision
25 Years Real Options Approach to Investment Valuation: Review and Assessment
During recent years, real options have emerged as one of the most actively researched topics in finance and related fields. A quarter of a century since the first appearence of the term, this article
REAL OPTIONS COMPARED TO TRADITIONAL COMPANY VALUATION METHODS: POSSIBILITIES AND CONSTRAINTS IN THEIR USE
The subject of the article is the presentation of an unconventional method of establishing the value of the company together with investment ventures – basing on the concept of real options (Real
THE STRATEGIC OPTIONS IN INVESTMENT PROJECTS VALUATION
The topic of real options applies the option valuation techniques to capital budgeting exercises in which a project is coupled with a put or call option. In many project valuation settings, the firm
Real options compared to traditional company valuation methods : Possibilities and constraints in their use
The subject of the article is the presentation of an unconventional method of establishing the value of the company together with investment ventures – basing on the concept of real options (Real
Flexibility valuation in operating mine decisions using real options pricing
The introduction of flexibility into the mine engineering process is required to counter the downturns and provide the ability to exploit the upturns that can develop. Flexibility can be assessed
Valuing flexibilities in large-scale real estate development projects
This thesis aims to develop a set of strategic tools for real estate development projects. The conventional tools such as the Discounted Cash Flow (DCF) method fail to incorporate dynamics of real
Valuing the Option to Delay in Engineering Management: A Case Study
  • M. Zellner, A. Abbas
  • Business
    2019 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM)
  • 2019
TLDR
The case study and sensitivity analyses show that the option value attains its maximum at the parameter setting that makes the decision maker without the option to delay indifferent between alternatives, indicating the close relationship between the value of perfect information and option value.
Real Option As The Tool For Valuation And Strategic Guidance For The Post-Industrial Organizations
Post industrial organization puts premium on flexibility, and also on assets that confer flexibility. In the post-industrial business environment, uncertainty need to be understood and managed to
...
1
2
3
4
5
...