The Role of Real Options in Capital Budgeting: Theory and Practice-super-1
AbstractMost discussions of capital budgeting take for granted that discounted cash flow (DCF) and real options valuation (ROV) are very different methods that are meant to be applied in different circumstances. Such discussions also typically assume that DCF is "easy" and ROV is "hard"-or at least dauntingly unfamiliar-and that, mainly for this reason, managers often use DCF and rarely ROV. This paper argues that all three assumptions are wrong or at least seriously misleading. 2006 Morgan Stanley.
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Bibliographic InfoArticle provided by Morgan Stanley in its journal Journal of Applied Corporate Finance.
Volume (Year): 18 (2006)
Issue (Month): 2 ()
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