Real options--an introduction and an application to R&D valuation.: An article from: Engineering Economist

This digital document is an article from Engineering Economist, published by Institute of Industrial Engineers, Inc. (IIE) on June 22, 2002. The length of the article is 4401 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the author: In this short paper, we summarize the real options approach and show how it can be used to introduce flexibility into the capital budgeting process. We then go on to show an application of real option evaluation to research and development valuation in the pharmaceutical industry. Our calculations and illustrations are in Excel and can be easily replicated.

Citation Details
Title: Real options--an introduction and an application to R&D valuation.
Author: Simon Benninga
Publication:Engineering Economist (Refereed)
Date: June 22, 2002
Publisher: Institute of Industrial Engineers, Inc. (IIE)
Volume: 47 Issue: 2 Page: 151(18)

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