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Land valuation using a real option approach

✍ Scribed by Manuel Moreno; Javier F. Navas; Federico Todeschini


Publisher
Springer Milan
Year
2009
Tongue
English
Weight
614 KB
Volume
103
Category
Article
ISSN
1578-7303

No coin nor oath required. For personal study only.


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To have a real option means to have the possibility for a certain period to either choose for or against making an investment decision, without binding oneself up front. The real option rule is that one should invest today only if the net present value is high enough to compensate for giving up the