Capital Projects as Real Options: An Introduction Case Solution
This note sheds light on the inspiration for seeing projects as alternatives; provides a mapping in between a capital task and a choice; demonstrates how to cost the choice; and checks out the supervisory ramifications of this method to capital monetary. Concludes using a conversation of typical useful, analytical concerns that develop with this method.
This note goes through a structure for assessing company assets ventures as call choices. Presumes readers recognize with fundamental choice rates and standard capital financial guidelines.
PUBLICATION DATE: November 16, 1994
This is just an excerpt. This case is about FINANCE & ACCOUNTING