Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Management article
-
Reference no. U0208C
Authors: Fabian D'Souza
Published by: Harvard Business Publishing
Published in: "Harvard Management Update", 2002

Abstract

For more than a decade, experts have indicated that real options valuation can be a valuable tool to improve the decision-making process for project management, yet it hasn''t been widely adopted as a planning tool. Managers often worry that esoteric Black-Scholes equations used to evaluate real options would require expensive software and a trained financial expert. Instead, you can try using a decision-tree approach to mapping out your options to help coordinate your decisions with unfolding opportunities.

About

Abstract

For more than a decade, experts have indicated that real options valuation can be a valuable tool to improve the decision-making process for project management, yet it hasn''t been widely adopted as a planning tool. Managers often worry that esoteric Black-Scholes equations used to evaluate real options would require expensive software and a trained financial expert. Instead, you can try using a decision-tree approach to mapping out your options to help coordinate your decisions with unfolding opportunities.

Related