An Investigation Into the Relevance of Real Options Analysis for Capital Budgeting and Long-term Financing Decisions at Rand Water

2002 Capital budget

Author : Alaric Pagel
Release : 2002
Genre : Capital budget
Kind : eBook
Book Rating : /5 ( reviews)

GET EBOOK

Book Synopsis An Investigation Into the Relevance of Real Options Analysis for Capital Budgeting and Long-term Financing Decisions at Rand Water by : Alaric Pagel

Download or read book An Investigation Into the Relevance of Real Options Analysis for Capital Budgeting and Long-term Financing Decisions at Rand Water written by Alaric Pagel. This book was released on 2002. Available in PDF, EPUB and Kindle. Book excerpt:

Real Options Valuation

2009-09-02 Business & Economics

Author : Marcus Schulmerich
Release : 2009-09-02
Genre : Business & Economics
Kind : eBook
Book Rating : 701/5 ( reviews)

GET EBOOK

Book Synopsis Real Options Valuation by : Marcus Schulmerich

Download or read book Real Options Valuation written by Marcus Schulmerich. This book was released on 2009-09-02. Available in PDF, EPUB and Kindle. Book excerpt: Managerial decision-making during the lifetime of a project can have im portant implications on project handling and its contribution to shareholder value. Traditional capital budgeting methods (in particular methods based on net present value) fail to capture the role of managerial degrees of free dom and therefore tend to lead to a systematic undervaluation of the project. In contrast, the real options approach to investment analysis characterizes decision-making flexibility in terms of (real) option rights which can be eval uated analogously to financial options using contingent-claims pricing tech niques widely used in capital markets. The research carried out by Marcus Schulmerich analyzes real options for n- constant and stochastic interest rates versus constant interest rates. Analyzing stochastic interest rates in the context of real options valuation is of particular relevance given their long time to maturity which makes them more vulnera ble to interest rate risk than short-term financial options. To date, there has not been a comprehensive review of this issue in the academic literature. The fact that interest rates have fiuctuated widely over the recent years further highlights the need for studying this issue.

Real Options

1996-03-14 Business & Economics

Author : Lenos Trigeorgis
Release : 1996-03-14
Genre : Business & Economics
Kind : eBook
Book Rating : 025/5 ( reviews)

GET EBOOK

Book Synopsis Real Options by : Lenos Trigeorgis

Download or read book Real Options written by Lenos Trigeorgis. This book was released on 1996-03-14. Available in PDF, EPUB and Kindle. Book excerpt: Comprehensive in scope, Real Options reviews current techniques of capital budgeting and details an approach (based on the pricing of options) that provides a means of quantifying the elusive elements of managerial flexibility in the face of unexpected changes in the market. In the 1970s and the 1980s, developments in the valuation of capital-investment opportunities based on options pricing revolutionized capital budgeting. Managerial flexibility to adapt and revise future decisions in order to capitalize on favorable future opportunities or to limit losses has proven vital to long-term corporate success in an uncertain and changing marketplace. In this book Lenos Trigeorgis, who has helped shape the field of real options, brings together a wealth of previously scattered knowledge and research on the new flexibility in corporate resource allocation and in the evaluation of investment alternatives brought about by the shift from static cash-flow approaches to the more dynamic paradigm of real options—an approach that incorporates decisions on whether to defer, expand, contract, abandon, switch use, or otherwise alter a capital investment. Comprehensive in scope, Real Options reviews current techniques of capital budgeting and details an approach (based on the pricing of options) that provides a means of quantifying the elusive elements of managerial flexibility in the face of unexpected changes in the market. Also discussed are the strategic value of new technology, project interdependence, and competitive interaction. The ability to value real options has so dramatically altered the way in which corporate resources are allocated that future textbooks on capital budgeting will bear little resemblance to those of even the recent past. Real Options is a pioneer in this area, coupling a coherent picture of how option theory is used with practical insights in into real-world applications.

Real Options in Theory and Practice

2009-07-16 Business & Economics

Author : Graeme Guthrie
Release : 2009-07-16
Genre : Business & Economics
Kind : eBook
Book Rating : 08X/5 ( reviews)

GET EBOOK

Book Synopsis Real Options in Theory and Practice by : Graeme Guthrie

Download or read book Real Options in Theory and Practice written by Graeme Guthrie. This book was released on 2009-07-16. Available in PDF, EPUB and Kindle. Book excerpt: Decision-makers in business and economics face a staggering array of problems. For example, managers of growing firms have to decide when to expand their business, governments have to decide whether to undertake large infrastructure investments, and managers of oil firms must decide how rapidly to deplete their reserves. While these problems seem quite diverse, they all share many important features. In each case, the decision-maker must choose when to take a particular action that will be potentially impossible to reverse, and the consequences of taking (or not taking) that action are uncertain. Also, the timing and nature of these actions directly affect the cash flows generated by the entities they manage. This book explains how techniques originally developed to price financial derivatives can be used to analyze real-world decisions, and provides the tools necessary to put them into practice. The real options analysis approach to decision-making is built on strong theoretical foundations, and is widely discussed in practitioner literature, but often only at a fairly intuitive level. What practitioners need-and what this book delivers-is a structured approach to systematically applying real options analysis to the wide variety of problems they will meet in business and economics. Real Options in Theory and Practice focuses on building up a general approach to solving real options problems from the ground up. Rather than aiming to build a "black box" to solve a small set of standardized real options problems, it describes the building blocks of any successful real options analysis and shows how they can be assembled in a way that is appropriate to the problem being analyzed. For both practitioners and academics, Real Options in Theory and Practice will serve as an authoritative and invaluable resource for those looking for effective and practical solutions to complex, real-life problems.

Real Options Analysis

2012-07-02 Business & Economics

Author : Johnathan Mun
Release : 2012-07-02
Genre : Business & Economics
Kind : eBook
Book Rating : 079/5 ( reviews)

GET EBOOK

Book Synopsis Real Options Analysis by : Johnathan Mun

Download or read book Real Options Analysis written by Johnathan Mun. This book was released on 2012-07-02. Available in PDF, EPUB and Kindle. Book excerpt: "Mun demystifies real options analysis and delivers a powerful, pragmatic guide for decision-makers and practitioners alike. Finally, there is a book that equips professionals to easily recognize, value, and seize real options in the world around them." --Jim Schreckengast, Senior VP, R&D Strategy, Gemplus International SA, France Completely revised and updated to meet the challenges of today's dynamic business environment, Real Options Analysis, Second Edition offers you a fresh look at evaluating capital investment strategies by taking the strategic decision-making process into consideration. This comprehensive guide provides both a qualitative and quantitative description of real options; the methods used in solving real options; why and when they are used; and the applicability of these methods in decision making.

Popular eBooks

An Investigation Into the Relevance of Real Options Analysis for Capital Budgeting and Long-term Financing Decisions at Rand Water

Real Options Valuation

Real Options

Real Options in Theory and Practice

Real Options Analysis

You may also like...