Real Option Valuation Real Option Valuation - quantify the embedded strategic value for a range of proposed or existing investment scenarios
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price analysis investment cash flow pricing tool investment analysis

Real Option Valuation Description

Real Option Valuation - quantify the embedded strategic value for a range of proposed or existing investment scenarios The Real Option Valuation template encompasses a suite of option pricing tools to quantify the embedded strategic value for a range of proposed or existing investment scenarios. Traditional discounted cash flow investment analysis will only accept an investment if the returns on the project exceed the hurdle rate. While this is a worthwhile exercise, it fails to consider the myriad of strategic options that are associated with many investments. This template provides the ability to identify what options may exist in your proposal and the tools to estimate the quantification of them.Here are some key features of "Real Option Valuation":· Ease and flexibility of input, with embedded help prompts.· Informative 'Quick Start' menu for choosing the correct tool for the situation.· Modified Black Scholes models to value the options to delay, expand, or abandon investments.· Automatic binomial 'tree' builder model to evaluate complex strategic options with multiple stages.· Nash equilibrium Game Theory model to evaluate market entry strategies in a competitive environment.· Ability to predefine historical investment and/or industry risk profiles to utilize across models.Requirements:· Excel 2004

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