Real Options and Real Engineering Projects

Engineering Management Journal;  December 1, 2007 ;     700+ words ...Abstract: Real options analysis is a tool that has not fully...mathematical details of how to perform real options analyses, without taking the time...In addition, many papers contrast real options analysis with a simple NPV analysis...

Can we capture the value of option volatility?

Engineering Economist;  July 1, 2008 ;     700+ words ......interest rate. Real options analysis adds...parameter: the volatility coefficient. In its original...options, the volatility coefficient has a mathematical...be exercised. Real options analysis is...determining the volatility coefficient are ...

The real thing

Australian CPA;  March 1, 2002 ;     700+ words ...The theory of real options is steadily finding its way into...its presence felt in Australia: real options. Blue chip companies such as BHP...of other firms. Around the world real options is currently being used by companies...

Are "real options" actually used in the real world?

Engineering Economist;  September 22, 2007 ;     700+ words ......and Antikarov (2001) suggested that real options would dominate the capital budgeting...option does. While many proponents of real options are critical of NPV analysis, it is...trees were developed. The benefit of real options analysis is that it incorporates volatility...

MAKING USE OF REAL OPTIONS SIMPLE: AN OVERVIEW AND APPLICATIONS IN...

The Engineering Economist;  January 1, 2005 ;     700+ words ...This article focuses on how the use of real options can be made simple, providing an overview...applications across industries. After common real options are discussed through a comprehensive...the key lessons and implications of real options thinking for flexible decision making...

Real options reasoning in healthcare: an integrative approach and...

Journal of Healthcare Management;  May 1, 2007 ;     700+ words ......perspective on strategic capital investments, called real options. Proponents of real options argue that this is a superior way of approaching...Within the healthcare literature, articles on real options have focused on pricing these options. This...

Strategy, Value, and Risk--The Real Options Approach.

Journal of Risk and Insurance;  June 1, 2004 ;     700+ words ...Strategy, Value, and Risk--The Real Options Approach, by Jamie Rogers, 2002...real-life takeover valuation using real options, http://allman.rhon.itam.mx...ArredondoSinha.PDF). Thus, the use of real options can be quite useful for insurance...

A STUDY ON ESTIMATING INVESTMENT TIMING OF REAL OPTIONS

The Engineering Economist;  July 1, 2008 ;     700+ words ...One of the most critical issues in real options analysis is determining the optimal...Research indicates that failing to exercise real options on time reduces the project's value...research, an early decision rule for real options is developed, and a simulation technique...

A study on estimating investment timing of real options.

Engineering Economist;  July 1, 2008 ;     700+ words ......1996)). This evaluation technique, real options analysis, provides an opportunity to...in an uncertain environment, but the real options valuation concept requires some adjustments...One of the most critical issues in real options is deciding the timing of investment...

USING AN OPTIONS APPROACH TO EVALUATE KOREAN INFORMATION TECHNOLOGY...

The Engineering Economist;  July 1, 2004 ;     700+ words ......a practical case application of the real options framework that addresses a multi-stage...sensitivity analyses and discussion for each real options framework provide guidelines for improved...decision-making. In general, it is shown that the real options approach identifies value ...

Real Options and Energy Management - Using Options Methodology to Enhance...

PR Newswire;  March 22, 2005 ;     700+ words ......c14344 ) has announced the addition of Real Options and Energy Management -- Using Options...focuses on both the fundamentals of real options, and the very latest practical approaches...case studies and examples of the use of real options in the industry to demonstrate how the...

A better understanding of why NPV undervalues managerial flexibility

The Engineering Economist;  January 1, 2002 ;     700+ words ...ABSTRACT The Real Options paradigm addresses the valuation...article shows how some projects with real options can be valued using simple and familiar...adjusted to account for the impact of real options on risk, a traditional net present...

Managers are Unable to Communicate Value... ...And it Costs Their...

PR Newswire;  August 7, 2002 ;     548 words ......financial language. Until today. With the Real Options Analysis Toolkit, Decisioneering has...training and software. I believe that the real options product will be extremely valuable to...International, one of the early adopters of real options. The secret that everyone knows but...

PROJECT VALUATION USING REAL OPTIONS: A PRACTIONER'S GUIDE

Project Management Journal;  December 1, 2006 ;     700+ words ...PROJECT VALUATION USING REAL OPTIONS: A PRACTIONER'S GUIDE J. Ross...relatively easy means to understand real options and their applicability. A disclaimer...potential gains. They assert that real options is a technique for appropriately...

Using an options approach to evaluate Korean information technology...

Engineering Economist;  September 22, 2004 ;     700+ words ......investments on real assets-commonly referred to as real options. Under the real options framework, any corporate decision to invest...becomes quantifiable. In fact, the ability of the real options framework to quantify this flexibility makes...