Title :
Real Options for engineering management decision making
Author_Institution :
Dept. of Ind. Eng., Shenkar Coll., Ramat Gan, Israel
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;
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
DOI :
10.1109/ICIEEM.2010.5646656
