search query: @indexterm NET PRESENT VALUE / total: 71
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| Author: | Fischer, T. R. Hahnenstein, L. Heitzer, B. |
| Title: | Kapitalmarkttheoretische Ansätze zur Berücksichtigung von Handlungsspielräumen in der Unternehmensbewertung |
| Journal: | Zeitschrift für Betriebswirtschaft
1999 : VOL. 69:10, p. 1207-1232 |
| Index terms: | OPTION PRICES CAPITAL BUDGETING NET PRESENT VALUE VALUATION DISCOUNTED CASH FLOW |
| Language: | ger |
| Abstract: | A growing body of literature recommends the use of option pricing techniques in capital budgeting problems claiming superiority over traditional approaches such as the net present value method. We adapt the standard discounted cash flow procedure and the well known time state preference model by incorporating decision tree analysis in order to show that these two approaches are fully compatible with an application of the binomial option pricing model. After illustrating the consistency of the results by presenting a fairly simple capital budgeting example the relationship be- tween the three approaches is examined more formally in a generalized discrete-time, two-states framework. The propo- sition made in parts of the 'real options' literature that traditional methods are unable properly to capture the value of managerial flexibility is based on an simplified analysis |
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