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Unformatted text preview: to expand, close or delay. Each article identifies the concepts of real options and outlines a specific application in a particular industry or investment. 2. How does the "real options" decision criterion differ from NPV analysis? NPV analysis provides an upfront analysis for a "go" or "no go" decision on a project, with the value of future options as part of the relevant cash flows. As the project moves through stages of development, identifying and analyzing (NPV analysis) available real options is a dynamic, time line focus on the progression of a project through time, recognizing that delay or abandonment are important and valuable "flexibility" options for managers....
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This note was uploaded on 09/13/2011 for the course FIN 6301 taught by Professor El-asmawanti during the Fall '09 term at University of Texas at Dallas, Richardson.
- Fall '09