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

Alacarz Garcia Francisco, Markku Heikkilä

    Forskningsoutput: TidskriftsbidragArtikelVetenskapligPeer review

    4 Citeringar (Scopus)

    Sammanfattning

    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.

    OriginalspråkOdefinierat/okänt
    Sidor (från-till)345–368
    TidskriftJournal of Decision Systems
    Volym12
    Nummer3-4
    DOI
    StatusPublicerad - 2003
    MoE-publikationstypA1 Tidskriftsartikel-refererad

    Nyckelord

    • Fuzzy Logic
    • Real option valuation
    • decision-making

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