search query: @author Trigeorgis, L. / total: 6
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| Author: | Panayi, S. Trigeorgis, L. |
| Title: | Multi-stage real options: the cases of information technology infrastructure and international bank expansion |
| Journal: | Quarterly Review of Economics and Finance
1998 : VOL. 38:SPECIAL ISSUE, p. 675-692 |
| Index terms: | FINANCE OPTIONS INFORMATION TECHNOLOGY |
| Language: | eng |
| Abstract: | This paper examines multi-stage real options applications that have strategic import beyond that captured by standard DCF valuation approaches. After reviewing the concept of multi-stage options in the case of R&D, the paper analyses two actual case studies: the information technology infrastructure decision by a telecommunications authority; and the international expansion option by a bank. It is shown that options valuation an justify making such strategic investment decisions even if NPV suggests otherwise. |
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