Project Valuation Using Real Options

Project Valuation Using Real Options PDF
Author: Prasad Kodukula
Publisher: J. Ross Publishing
ISBN: 9781932159431
Size: 76.21 MB
Format: PDF, ePub, Mobi
Category : Business & Economics
Languages : en
Pages : 256
View: 1648

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Book Description: Business leaders are frequently faced with investment decisions on new and ongoing projects. The challenge lies in deciding what projects to choose, expand, contract, defer, or abandon, and which method of valuation to use is the key tool in the process. This title presents a step-by-step, practical approach to real options valuation to make it easily understandable by practitioners as well as senior management. This systematic approach to project valuation helps you minimize upfront investment risks, exercise flexibility in decision making, and maximize the returns. Whereas the traditional decision tools such as discounted cash flow/net present value (DCF/NPV) analysis assume a “fixed” path ahead, real options analysis offers more flexible strategies. Considered one of the greatest innovations of modern finance, the real options approach is based on Nobel-prize winning work by three MIT economists, Fischer Black, Robert Merton, and Myron Scholes.

Project Valuation Using Real Options

Project Valuation Using Real Options PDF
Author: Prasad Kodukula
Publisher: J. Ross Publishing
ISBN: 9788131508961
Size: 27.67 MB
Format: PDF, ePub
Category : Investments
Languages : en
Pages : 382
View: 1490

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Book Description: Derived from options theory in modern finance and based on the Nobel Prize-winning work of three MIT economists, this book provides a systematic approach to project valuation that enables readers to minimize investment risks, exercise flexibility in decision making, and maximize returns.

Real Option Modeling And Valuation

Real Option Modeling and Valuation PDF
Author: James A. DiLellio
Publisher: James A. DiLellio
ISBN:
Size: 65.91 MB
Format: PDF, Docs
Category : Business & Economics
Languages : en
Pages : 137
View: 1475

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Book Description: The application of option pricing methods, which were initially developed for financially-traded assets, are now often applied to the valuation of options on real assets. Real options, or options on real assets, supplements standard discounted cash flow valuation approaches by including the value of managerial flexibility. Real Option Modeling and Valuation attempts to bridge the gap between theory and practice using the commercially available software program DPL© (Decision Programming Language) and Excel® to provide a decision tree approach to valuation using real options. Companion website: https://sites.google.com/view/real-options

Applied Real Option Valuation

Applied Real Option Valuation PDF
Author: Kaveh Sheibani
Publisher: ORLAB Analytics
ISBN:
Size: 54.72 MB
Format: PDF, ePub
Category : Business & Economics
Languages : en
Pages : 78
View: 6679

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Book Description: Supporting investment profitability analysis and decision-making with real option analysis is an issue of increasing interest among both practitioners and managers. This special issue of the Journal of Applied Operational Research (JAOR) presents some new progress in applying real option analysis and valuation to real world problems in a number of industries.

A Practical Approach To Research And Development Project Valuation Using Real Options

A Practical Approach to Research and Development Project Valuation Using Real Options PDF
Author: Joseph Stevens
Publisher:
ISBN:
Size: 40.72 MB
Format: PDF, Kindle
Category :
Languages : en
Pages :
View: 605

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Book Description:

Real Option Valuation In Service Industries

Real Option Valuation in Service Industries PDF
Author: Jürgen Müller
Publisher: Springer-Verlag
ISBN: 3322992993
Size: 26.20 MB
Format: PDF, Kindle
Category : Business & Economics
Languages : de
Pages : 267
View: 843

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Book Description: Jürgen Müller applies the real option approach to service industries, in this case to retail banking; he provides empirical support for the approach and simplifies the applicability of real option concepts in corporate practice.

Fair Value Measurements

Fair Value Measurements PDF
Author: Mark L. Zyla
Publisher: John Wiley & Sons
ISBN: 0470588772
Size: 33.19 MB
Format: PDF, ePub, Mobi
Category : Business & Economics
Languages : en
Pages : 384
View: 7667

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Book Description: A hands-on volume for financial executives with guidance on the fair value measurement process In today's dynamic and volatile markets, whether buying or selling, what corporate officers need to know is the worth of an asset today, a task that for many has become complex and at times confusing. Fair Value Measurements: Practical Guidance and Implementation demystifies this topic, offering you a nuts-and-bolts guide of the most recent developments in preparing financial statements using fair value measurements. This straightforward book covers the best practices on measuring fair value in a business combination and how to subsequently test the value of these assets for impairment. Filters complicated insider concepts into easy-to-understand information on the valuation specialist's function Discusses the many new FASB pronouncements involving fair value Instantly familiarizes you on the ins and outs of fair value financial disclosure Well-written, conversational in tone, and filled with valuable insights, Fair Value Measurements: Practical Guidance and Implementation lifts the veil of confusion from the substantial and growing requirements for fair value disclosures.

Real Options Valuation

Real Options Valuation PDF
Author: Max Schöne
Publisher: Springer
ISBN: 3658074930
Size: 30.20 MB
Format: PDF, Docs
Category : Business & Economics
Languages : en
Pages : 104
View: 3558

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Book Description: The Author shows that modelling the uncertain cash flow dynamics of an investment project deserves careful attention in real options valuation. Focusing on the case of commodity price uncertainty, a broad empirical study reveals that, contrary to common assumptions, prices are often non-stationary and exhibit non-normally distributed returns. Subsequently, more realistic stochastic volatility, jump diffusion, and Lévy processes are evaluated in the context of a stylised investment project. The valuation results suggest that stochastic process choice can have substantial implications for valuation results and optimal investment rules.

Megaproject Management

Megaproject Management PDF
Author: Edoardo Favari
Publisher: Springer Nature
ISBN: 3030393542
Size: 50.35 MB
Format: PDF, ePub, Mobi
Category : Technology & Engineering
Languages : en
Pages : 124
View: 6081

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Book Description: The book investigates the various aspects characterizing Megaprojects from numerous perspectives and by integrating different disciplines: engineering, economics, business organization, human resource management, law, etc. It represents the first output of MeRIT (the Megaproject Research Interdisciplinary Team), and focuses on the intrinsic and unavoidable complexity of Megaprojects. The chapters have intentionally not been standardized, and humanistic topics are not separated from technical ones: this way of reading and interpreting Megaprojects through the cross-pollination of various disciplines reflects the MeRIT approach. Addressing the complexity involved in Megaprojects requires the use of a hermeneutic circle of sorts: understanding the project as a whole is achieved by referring to the specific parts, while each part can only be understood in relation to the whole. This circular approach appears to be the only one applicable to Megaprojects: no final destination, no final synthesis can be achieved. This volume consists of eight chapters written by researchers in law, economics, sociology, business organization, engineering, architecture and landscaping. The topics covered will be relevant to researchers, practitioners involved in the development of Megaprojects, and policymakers at the EU level.

Capital Budgeting Valuation

Capital Budgeting Valuation PDF
Author: Philip English
Publisher: John Wiley & Sons
ISBN: 0470569506
Size: 71.51 MB
Format: PDF, Kindle
Category : Business & Economics
Languages : en
Pages : 518
View: 3079

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Book Description: An essential guide to valuation techniques and financialanalysis With the collapse of the economy and financial systems, manyinstitutions are reevaluating what they are willing to spend moneyon. Project valuation is key to both cost effectiveness measuresand shareholder value. The purpose of this book is to provide a comprehensiveexamination of critical capital budgeting topics. Coverage extendsfrom discussing basic concepts, principles, and techniques to theirapplication to increasingly complex, real-world situations.Throughout, the book emphasizes how financially sound capitalbudgeting facilitates the process of value creation and discusseswhy various theories make sense and how firms can use them to solveproblems and create wealth. Offers a strategic focus on the application of varioustechniques and approaches related to a firm's overall strategy Provides coverage of international topics based on the premisethat managers should view business from a global perspective Emphasizes the importance of using real options Comprised of contributed chapters from both experiencedprofessionals and academics, Capital Budgeting Valuationoffers a variety of perspectives and a rich interplay of ideasrelated to this important financial discipline.