Talk:Real options analysis
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Um ... what is this? Should it be at Real options? -- Zoe
23:36, 21 November 2006 (UTC)
- I agree this article is confusing and it's hard to know even where to start to change it. I'll try when I have some time. Links to other derivatives pages would certainly help.
- above question:property) whose subtitles would be (film), (play), (book), (other). And please notice the online dictionary I referred to. Really, I don't think this is much ado about nothing. Did you read Eats, Shoots and Leaves? There are language sticklers out there. I don't think that Wikipedia wants to be the only encyclopedia to promote its use. JohnClarknew 16:44, 23 November 2006 (UTC)
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- You're mistaken - it is not my book, I believe the author is Treogonis (sp?). Please look at the links on the main article page. They should convince you that the concept is real (btw it is not a type of financial option, nor is it a type of contract written on real estate, it refers to choices that occur in non-financial (aka "real") investments) Smallbones 21:34, 25 November 2006 (UTC)
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[edit] Real options analysis / Real options theory / Strategic options
There seem to be several names for the same subject area, probably because it derives from several different fields.
This field allows inclusion of the net present value (NPV) of future management decisions (the real options) as a correction to traditional discounted cash flow methods.
There are several widely documented real options with general applicability (e.g. to manufacturing):
- abandonment
- timing (i.e. deferral/advance)
- acceleration or growth
- flexibility (switch, contract, outsource, etc.)
These may have applicability in hi-tech projects[1], or R&D fields:
- stage
-
