Home » Real Options in Capital Investment: Models, Strategies, and Applications by Lenos Trigeorgis
Real Options in Capital Investment: Models, Strategies, and Applications Lenos Trigeorgis

Real Options in Capital Investment: Models, Strategies, and Applications

Lenos Trigeorgis

Published January 1st 1995
ISBN : 9781282405400
ebook
361 pages
Enter the sum

 About the Book 

This compilation integrates various new contributions to the growing real options literature. Recent developments in the valuation of capital investment opportunities seen as real options (e.g. to defer, expand, abandon, or switch) have provided theMoreThis compilation integrates various new contributions to the growing real options literature. Recent developments in the valuation of capital investment opportunities seen as real options (e.g. to defer, expand, abandon, or switch) have provided the tools and unlocked the possibilities to revolutionize the field of capital budgeting. The resulting insights, strategies, and techniques enable quantifying the thus far elusive elements of managerial operating flexibility and strategic interactions. These are vital to successfully capitalize on favorable future investment opportunities or limit losses from adverse market developments. This book presents various models and operating strategies, and a variety of applications ranging from acquisitions and divestitures, to natural resource development and pollution compliance. It is intended for both the academic and the professional market.The books contributions are divided into five parts, covering sections on real options and alternative valuation paradigms for capital investment analysis- on the analysis of general exchange or switching options, and interdependencies among multiple such options- on strategic acquisitions, infrastructure, and foreign investment options- on mean reversion/ alternative formulations in natural resource investments, shipping, and start-up ventures- and on other applications in pollution compliance, land development, flexible manufacturing, and financial default options. Both academic and practitioner interest in these developments is unusually high. The book can serve as supplementary material for the academic market, e.g., in advanced finance courses in option pricing or capital budgeting, in doctoral seminars, and as a library resource. It may also be of interest to the professional market (e.g. corporate planners and finance executives in the oil, pharmaceutical, auto and a variety of other industries), academics from related areas (e.g. decision analysts or economists), as well as to international readers (academics, doctoral students, and professionals).