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Real Options: The Value Added through Optimal Decision
Making |
How management can use techniques from the field of
decision analysis to more accurately estimate the value
of assets that have flexible options.
One of the primary responsibilities of a management
team is to make decisions during the execution of
projects so that gains are maximized and losses are
minimized. Decision analysis is especially critical for
projects with built-in flexibility, or options. This
article explores how merging decision analysis with the
well-known principles used in valuing options on
financially traded assets can be further enhanced by
applying an intuitive approach based on familiar
concepts from the field of decision analysis. 2010 |
