REAL OPTIONS TRIGEORGIS L. Księgarnia

Real Options

Managerial Flexibility and Strategy in Resource Allocation

In the 1970s and the 1980s, developments in the valuation of capital-investment opportunities based on options pricing revolutionized capital budgeting. Managerial flexibility to adapt and revise future decisions in order to capitalize on favorable future opportunities or to limit losses has proven vital to long-term corporate success in an uncertain and changing marketplace.

In this path-breaking book Lenos Trigeorgis, who has helped shape the field of real options, brings together a wealth of previously scattered knowledge and research on the new flexibility in corporate resource allocation and in the evaluation of investment alternatives. In comparison to static cash-flow approaches, the more dynamic paradigm of real options incorporates decisions on whether to defer, expand, contract, abandon, switch use, or otherwise alter a capital investment.

Comprehensive in scope. Real Options reviews current techniques of capital budgeting and details an approach (based on the pricing of options) that provides a Means of quantifying the elusive elements of managerial flexibility in the face of unexpected changes in the market. Also discussed are the Strategic value of new technology, the interdependence of projects, and competitive interaction.

The ability to value real options has so dramatically altered the way in which corporate resources are allocated that future textbooks on capital budgeting will bear little resemblance to those of even the recent . past. Real Options is a pioneer in this area, coupling a coherent picture of how option theory is used with practical insights into real-world applications.

Lenos Trigeorgis is Professoir of'Finance at the University of Cyprus

"Discounted cash flow understates value when flexibility matters, when decisions come in several stages (as in R&D), and when investments are undertaken for strategic reasons. DCF misses the value of real options. This book shows how real options can be identified and properly valued. It is a big step toward application of option pricing concepts in practical corporate finance."

Stewart C. Myers, Gordon Y. Billard Professor of Finance, Sloan School of Management, Massachusetts Institute of Technology

"The real options approach to capital budgeting presented in this book represents a theoretically rigorous integration of the older approaches of DCF analysis, decision trees, and Monte Carlo simulation, allowing the analyst to handle uncertainty about future cash flows and future decisions in a satisfactory manner for the first time. Trigeorgis's book is a simple and effective introduction to this increasingly important area of applied corporate finance."

Michael J. Brennan, Goldyne and Irwin Hearsh Professor of Banking and Finance, Anderson School of Management, UCLA, and Professor of Finance, London Business School

"Real Options is a lucid account of the application of the insights and techniques of option pricing in enhancing managerial flexibility in an ever-changing environment. Numerous hands-on examples illustrate . how capital budgeting and strategic planning acquire a new dimension once the embedded real options are taken into account. Written by So expert in the field, this comprehensive and rigorous book is eminently readable. It will enrich the perspective of any investment professional or | CEO who invests time in this brilliant book and reflects on its message."

George M. Constantinides, Leon Carroll Marshall Professor of Finance, University of Chicago

"This book is an ambitious and thorough attempt by the author, who has done much of the breakthrough work in this area, to bring together the scattered knowledge and research progress in real options into a "comprehensive work that is both scholarly and applied. It is a significant contribution to corporate finance, options, and capital budgeting. It will be the bible of a field that has grown in importance to both academics and corporate resource allocators."

Michael Edieson, Associate Professor, Graduate School of Business Administration, Harvard University

420 pages

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czy wybrany tytuł polskojęzyczny lub anglojęzyczny jest aktualnie na półce księgarni.