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Topic: Ch: 9 “Multi-Period Capital Budgeting Under Uncertainty: Real Options Analysis”

In: Business and Management

Submitted By Alamgirjnu
Words 8388
Pages 34
Prepared By
Mohammad Alamgir Hossain Department of Finance
Jagannath University, Dhaka

Topic
Multi-period Capital Budgeting under Uncertainty: Real Options Analysis”

Table of Contents Section | Name | Page no. | Letter of Transmittal | i | Acknowledgement | ii | Table of Contents | iii | Section-A | Introduction | 01-02 | | A.1 Introduction | 01 | | A.2 Rationale of the study | 01 | | A.3 Objective of Our Study | 02 | | A.4 Scope | 02 | | A.5 Methodology of the Study | 02 | | A.6 Limitations of the Study | 02 | Section-B | Comparing NPV with Decision Trees and Real Options | 03-08 | | B.1 Comparing NPV with Decision Trees and Real Options | 03-05 | | B.2 Recognizing Real Options | 05 | | B.3 Differences between NPV, Decision Trees, and Real Options | 05-08 | | B.4 Risk-Neutral Probabilities | 08 | Section-C | Three Key Assumptions for pricing Real Options | 09-10 | | C.1 Three Key Assumptions for pricing Real Options | 09-10 | Section-D | Valuing Real Options on Dividend-Paying Assets | 10-12 | | D.1 Valuing Real Options on Dividend-Paying Assets | 10-12 | Section-E | Types of Real Options | 12-13 | | E.1 Types of Real Options | 12-13 | Section-F | Valuing Combinations of Simple Real Options | 13-16 | | F.1 Valuing Combinations of Simple Real Options | 13-16 | Section-G | Valuing Compound Options | 17-21 | | G.1 Simultaneous Compound Options | 17-19 | | G.2 Sequential Compound Options | 19-21 | Section-H | Switching Option | 22-26 | | H.1 Switching Option | 22-26 | Section-I | An Example of how to evaluate an investment Program? | 26-27 | | I.1 An Example of how to evaluate an investment Program? | 26-27 | Empirical Evidence | 28 | Conclusion | 29 | References | 30 |

Section-A.1: Introduction
The term investment refers to projection of any asset or property that is...

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