A better understanding of why NPV undervalues managerial
flexibility.
INTRODUCTION
The Real Options paradigm is the application of options pricing
theory to capital budgeting. Recent research has made valuable
breakthroughs in identifying and pricing a variety of . . .
Modelling regulatory distortions with real options.
INTRODUCTION
As readers of this journal are aware, [(Park 1999), (Park 2000),
(Nembhard 2000), (Herath 1999), and (Herath 1999),] the real option
pricing approach utilizes financial option . . .
Diversification as real options and the implications on
firm-specific risk and performance.
INTRODUCTION
The established strategic management literature posits that firms
can diversify in one of three ways, characterized by the nature of the
linkages between the operating divisions in a . . .
Contemporary Engineering Economics. (Book Review).(Book
Review)
By Chan S. Park
Third Edition, Prentice Hall, Upper Saddle River, New Jersey, 2002,
xxxi + 920 pp. ISBN 0-13-089310-2. List: $102.00.
In this third edition of Contemporary Engineering . . .
Technical note -- new depreciation rules from the Job Creation
and Worker Assistance Act of 2002 and their impact on capital
inv
United States President George W. Bush recently signed an economic
stimulus bill into law entitled the Job Creation and Worker Assistance
Act. The law issues a number of directives aimed at . . .
Valuation of learning options in software development under
private and market risk.
INTRODUCTION
According to the Standish Group's CHAOS report (1), more than
20% of software projects fail and only less than 20% of software
projects are completed on time and on budget. The . . .
Dark fiber valuation.(valuation of dark fibre)
INTRODUCTION
Valuation of dark fibre has recently generated controversy, sparked
particularly by the large sums booked for swaps of dark fibre between
companies (13, 23, 24). One of the issues . . .
Real options and follower strategies: the loss of real option
value to first-mover advantage.
INTRODUCTION
The value in real options comes from the firm's ability to
wait until conditions are optimal before moving forward with a project.
Engineers are concerned about the loss of this . . .
Special issue -- part II.(Editorial)
"Real Options --Strategic Planning under uncertainty".
(Editorial)
We had initially scheduled a two-part series special issue on real
options. Part I was published in Volume 47, Number 2, 2002. . . .
The impact of volatility on firms holding growth options.
INTRODUCTION
Managers and analysts have long been aware that strategic growth
opportunities can be modeled as call options on future revenues, and
that these "growth options" contribute to firm . . .
Valuing lease contracts under incomplete information: a
real-options approach.
INTRODUCTION
Leasing was used by the ancient Sumerians several thousand years
B.C. Leasing is not confined only to the rental of real estate but
includes any asset imaginable (satellites, trucks, . . .
An options approach to valuing expansion flexibility in flexible
manufacturing system investments.
INTRODUCTION
Global competition in manufacturing environment has forced firms to
increase the quality and responsiveness to customization, while lowering
the costs. Manufacturing flexibility has . . .
Real options--an introduction and an application to R&D
valuation.
INTRODUCTION
One of the main tasks fading managers is resource allocation. The
allocation task is both a strategic and a financial task; neglecting the
financial aspects of the decision might . . .
Decision making under uncertainty--real options to the
rescue?
INTRODUCTION
Major corporations annually allocate substantial funds for a
variety of investment projects. Most strategic investment projects, such
as R&D, investment in information technology, . . .
"Real options--strategic planning under uncertainty":
special issue -- part I. (Editorial).(Brief Article)
Decision-making under uncertainty is the common theme in this
special issue. Unlike a typical probabilistic analysis or as it is
commonly known as, "risk analysis", real options approach is
gaining . . .
Selecting i -- Engineering economy needs a consensus.
(Readers' Forum).
Editorial Note: Articles published under the Readers' Forum
are intended to encourage a dialogue among readers in the community.
These articles represent the authors' personal views and do . . .
An Introduction to Mathematical Finance: Options and other
Topics. (Book Review).(Brief Article)
Cambridge University Press, New York, New York, 1999, xv + 184 pp.
ISBN (521-77043-2. List: $37.95. (hardback)
This beautiful little book is a welcome and needed contribution to
the academic . . .
Risk Assessment and Decision Making in Business and Industry: A
Practical Guide. (Book Review).(Brief Article)
CRC Press, Boca Raton, Florida, 1999, 239 pp. ISBN 0-8493-0268-4.
List: $31.96.
This well written text by Dr. Glenn Koller is a wonderfully concise
and practical resource that should be included . . .
Generalized formula for the periodic linear gradient series
payment in a skip payment loan with arbitrary skips. (Technical
Note
INTRODUCTION
A direct reduction loan consists of a sequence of equal
("level") periodic payments uniformly separated in time
("period"). A skip payment loan is a direct reduction loan in
which . . .
Discount rate value and cash flow definition: A new relationship
and its implications.
INTRODUCTION
Evaluating an investment project can require the use of approaches
designed to integrate the consideration of the flexibility and
uncertainties associated with the investment . . .
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