The Real Option Valuation model encompasses a suite of option pricing tools to quantify the embedded strategic value for a range of investment scenarios.
Version: 1.0The Real Option Valuation model encompasses a suite of option pricing tools to quantify the embedded strategic value for a range of 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.
License: Free To Try
Operating System: Windows
Homepage: www.excelbusinesstools.com
Developed by:
This model provides the ability to identify what options might exist in your proposal and the tools to estimate the quantification of them.
The key features of this model include:
· 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.