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Sensitivity Analysis of a Real Options Problem

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dc.contributor.author Lewis, Neal en_US
dc.contributor.author Eschenbach, Ted en_US
dc.contributor.author Hartman, Joseph en_US
dc.date.accessioned 2014-07-16T16:58:33Z
dc.date.available 2014-07-16T16:58:33Z
dc.date.issued 2007 en_US
dc.identifier.uri https://scholarworks.bridgeport.edu/xmlui/handle/123456789/805
dc.description.abstract The existing literature describes how financial option techniques can be applied for determining a project option value. However, input variables are assumed to be fixed and known over the project’s horizon. While this assumption may be accurate for short term financial options lasting a few weeks, it is rarely true for real options that last for years. An example problem is analyzed using both present worth and using real deferral options. Sensitivity analysis is conducted on both methods, showing how initial estimates and real world variability over the life of the project can impact the results of the valuation techniques. en_US
dc.language.iso en_US en_US
dc.publisher Institute of Industrial Engineers en_US
dc.subject Engineering en_US
dc.subject Industrial engineering en_US
dc.subject Real options en_US
dc.subject Present worth en_US
dc.subject Sensitivity analysis en_US
dc.subject Engineering management en_US
dc.title Sensitivity Analysis of a Real Options Problem en_US
dc.type Article en_US
dc.event.location Nashville, TN, USA en_US
dc.event.name 2007 Industrial Engineering Research Conference en_US

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