...Olga Kandinskaia; Francisco López Lubián Theoretical basis Via this case, students are introduced to several alternative methods of valuation, including the valuation based on the “real options” theory. The novelty of the case is the link between valuation and the type of innovation...

... cash flow DCF capital investment sensitivity analysis real options Suggestions for complementary cases dealing with analysis of capital projects : “The Investment Detective,” (UVA-F-813); “Fonderia di Torino S.p.A,” (UVA-F-1350) The cofounders of Compass Records, a small, independent...

... decision analysis course involving subjective probability assessment, decision tree modeling, simulation, real options, and game theory. In the analysis of this case, a student is expected to utilize ideas from all five of these areas. Make use of the GFB model to answer these questions. The GFB model...

...; practice interpreting the threshold and the corresponding strategy; Provide illustration for multiple-objective, multiple-stakeholder decision-making. decision analysis statistics regression simulation crystal ball real options spreadsheet environment sustainability ethics coal oil...

...Mark Jeffery; Chris Rzymski; Sandeep Shah; Robert J. Sweeney Technology projects are inherently risky; research shows that large IT projects succeed as originally planned only 28 percent of the time. Building flexibility, or real options, into a project can help manage this risk. Furthermore...