MB Finance
1 total work
Real Options
by Sydney Howell, Andrew Stark, David Newton, Dean Paxson, Mustafa Cavus, Kanak Patel, and Jose Pereira
Published 22 November 2000
Real option analysis is increasingly being applied to many aspects of executive decision making about which there is uncertainty. Not only is it important for capital investment decisions, but it has implications for corporate strategy and company valuation too. Real option analysis is fast becoming an essential, if complex, technique for all finance executives to grasp. This briefing seeks to demystify real options by explaining the essential concepts in accessible terms with worked practical examples to illustrate key points. It provides you with a thorough understanding of the concepts behind real options and a guide to carrying out a real option analysis, so that you can make informed decisions as to where and when to invest. You will also gain confidence in delegating to internal specialists or external consultants. Contents include: *Introducing real options *Real options and investment appraisal techniques *Essential concepts *How to use real options *Worked practical examples *Limitations and pitfalls *The future of real options analysis