The real options method applied to decision making – an investment analysis
نویسندگان
چکیده
منابع مشابه
Real Options and Investment Decision Making
Real options analysis seeks to value flexibility in investment opportunities – both the flexibility offered to management once the investment is undertaken, and the flexibility of delaying the investment through time. The real options approach contrasts with the standard approach to investment decision making, the net present value (NPV) approach, which assumes the investment opportunity is a n...
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The research addresses the management dilemma of a decrease in the number of capital project investments, due to the current methods of capital budgeting (i.e. net present value analysis using discounted cash flows) being ineffective, because it does not effectively deal with uncertainty in the investment, and also does take management's flexibility into account. It has been determined that a s...
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ژورنال
عنوان ژورنال: Brazilian Journal of Operations & Production Management
سال: 2019
ISSN: 2237-8960
DOI: 10.14488/bjopm.2019.v16.n4.a2