Improving investment decision making by expanding key knowledge with real option tools

Alacarz Garcia Francisco, Markku Heikkilä

    Tutkimustuotos: LehtiartikkeliArtikkeliTieteellinenvertaisarvioitu

    4 Sitaatiot (Scopus)

    Abstrakti

    Assessment of investment profitability with discounted cash flows has proven insufficient when industry structures change. Managers need an extended flexibility in decision–making that DCF analyzes cannot offer. Real Option valuation as a method for improving flexibility in investment decisions has been widely researched but less used in business. With good support tools it is possible for managers to cross the threshold to Real Option methods and thinking. Real Option spreadsheet tools support both decision–making processes and business learning. They utilize the flexibility that new key knowledge brings to volatile industry situations and lead to better investment decisions.

    AlkuperäiskieliEi tiedossa
    Sivut345–368
    JulkaisuJournal of Decision Systems
    Vuosikerta12
    Numero3-4
    DOI - pysyväislinkit
    TilaJulkaistu - 2003
    OKM-julkaisutyyppiA1 Julkaistu artikkeli, soviteltu

    Keywords

    • Fuzzy Logic
    • Real option valuation
    • decision-making

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