Access the full text.
Sign up today, get DeepDyve free for 14 days.
M. Brach (2002)
Real Options in Practice
Edmunds Badūns, Andrejs Čirjevskis (2012)
VALUE MAXIMIZING DECISION BY THE USE OF A REAL OPTION ANALYSIS IN CURRENT ECONOMIC CLIMATEEconomics and Management, 17
Johnathan Mun (2012)
Real options analysis : tools and techniques for valuing strategic investments and decisions
C. Teoh, G. Sheblé (2007)
Lattice Method of Real Option Analysis - Solving the Curse of Dimensionality and Strategic Planning2007 IEEE Lausanne Power Tech
(2000)
Valuation : measuring and managing the value of companies
T. Haahtela (2007)
Separating Ambiguity and Volatility in Cash Flow Simulation Based Volatility EstimationEuropean Finance
P. Kodukula, Chandra Papudesu (2006)
Project Valuation Using Real Options: A Practitioner's Guide
A. Damodaran (1995)
Investment Valuation: Tools and Techniques for Determining the Value of Any Asset
(1998)
Investment Opportunities as Real Options: Getting Started on the Numbers
The purpose of the paper is to present a real option valuation (ROV) model that will help to measure the value of managerial flexibility. The value of managerial flexibility appears to play a pivotal role nowadays, given the transition nature of Latvian economy. There are few academic works on the topic, yet none of the major companies in the Latvia have publicised ROV application. We have carried out ROV based on Scenario Planning and Strategic Alternatives. Having combined Scenario planning with Monte Carlo simulation and Risk-Neutral Probability-based ROV with alternative strategies of Company, authors provided a solution to the company's problem at hand. Thereby we have identified value maximising decisions regarding the Business Unit of the Latvian Company. The flow chart of ROV application has been created which would be a useful `road map' for Latvian practitioners in time of economic transition. Keywords: real option analysis; Monte Carlo simulation; risk neutral probability-based analysis. Reference to this paper should be made as follows: Cirjevskis, A. and Baduns, E. (2015) `Valuing managerial flexibility: an application of real option valuation in time of economic transition', Int. J. Computational Economics and Econometrics, Vol. 5, No. 2, pp.143163. Biographical notes: Andrejs Cirjevskis received
International Journal of Computational Economics and Econometrics – Inderscience Publishers
Published: Jan 1, 2015
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.