Download ~ Introduction to Real Options * by Walid Busaba ~ eBook PDF Kindle ePub Free

eBook details

Title: Introduction to Real Options
Author : Walid Busaba
Release Date : January 12, 2005
Genre: Business & Personal Finance,Books,Finance,
Pages : * pages
Size : 592 KB

Description

The real options approach to capital budgeting uses an options-based analysis to evaluate the real (as opposed to the financial) potential of projects. By charting the options as a series of decision points and events, managers can understand the risks and rewards of the projects, and more fully assess their opportunities. This note introduces the real options approach and describes the four main categories: expansion and follow-on options, timing and delay options, abandonment options and options that introduce flexibility into production. The expansion option is discussed in detail, including sample calculations and decision trees.