• DocumentCode
    3254238
  • Title

    Real Options for engineering management decision making

  • Author

    Gargir, Jacob

  • Author_Institution
    Dept. of Ind. Eng., Shenkar Coll., Ramat Gan, Israel
  • fYear
    2010
  • fDate
    29-31 Oct. 2010
  • Firstpage
    237
  • Lastpage
    239
  • Abstract
    This paper deals with an application of a Deferred Real Option to a solar energy project, to exhibit the importance of hidden opportunities in engineering management decision making. The project is first analyzed with the conventional Discount Cash Flow (DCF), and found to be unacceptable. It is then analyzed using a Decision Tree method with a Deferred Real Option and shows how the project becomes very desirable.
  • Keywords
    decision making; decision trees; financial management; decision tree; deferred real option; discount cash flow; engineering management decision making; solar energy project; Investments; Decision Tree Analysis; Deferred Option; Discount Cash Flow; Growth Option; Real Option; solar energy electricity;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Industrial Engineering and Engineering Management (IE&EM), 2010 IEEE 17Th International Conference on
  • Conference_Location
    Xiamen
  • Print_ISBN
    978-1-4244-6483-8
  • Type

    conf

  • DOI
    10.1109/ICIEEM.2010.5646656
  • Filename
    5646656
    • Link To Document
    https://search.isc.ac/dl/search/defaultta.aspx?DTC=49&DC=3254238