Long run value stabilization in a real options perspective
The present value of growth opportunities with stable long run value and decreasing investment cost is addressed in a real options perspective. The model is solved in terms of closed form solutions, and a duality between elementary real options of waiting to invest is conjectured to be a fundamental structure of a forthcoming theory of real options. A pure capital budgeting perspective is pursued. Natural lines for future research are accounted for.
|Date of creation:||2009|
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- Chang,Fwu-Ranq, 2009.
"Stochastic Optimization in Continuous Time,"
Cambridge University Press, number 9780521541947, September.
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