Flexibility modeling of investment projects with computer implementation
Investment decision making is very important for firm growth. The classical quantitative methods (NPV, IRR…) donÂ´t involve value of the firm option of flexible reaction to continuously changing conditions and take advantage of them. This deficiency eliminates the using of the real options methods that have been built on analogy between finance and real options. The typical real options that are frequently used in flexible firm investment projects are primarily option to wait, option to expansion, option to contract or option to defer the project. Using the analogy with finance options it is possible to valuate the firm flexibility included in the project in STRATEX. We can use either the binomial or Black-Scholes model. It is possible to implement the sensitive analysis for all inputs.
Volume (Year): 2008 (2008)
Issue (Month): 3 ()
|Contact details of provider:|| Postal: nam. W. Churchilla 4, 130 67 Praha 3|
Phone: (02) 24 09 51 11
Fax: (02) 24 22 06 57
Web page: http://www.vse.cz/
More information through EDIRC
|Order Information:|| Postal: Redakce Ekonomika a management, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3|
Web: http://www.vse.cz/eam/ Email:
When requesting a correction, please mention this item's handle: RePEc:prg:jnleam:v:2008:y:2008:i:3:id:43. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frantisek Sokolovsky)
If references are entirely missing, you can add them using this form.