Project CEMAPRE internal
| Title | Extensions in real options methodology |
| Participants | Manuel Guerra, Alexandra Moura, Carlos Oliveira (Principal Investigator) |
| Summary | In this project, we propose critically analyzing the methodology used to evaluate investment projects. Currently, the most used method among practitioners is the NPV, although academics find real options a superior method because it considers firms' flexibility to postpone their decisions. As in financial options, in real options, one intends to maximize the expected return of the investment project. In this research project, we will analyze different ways to include risk in this financial assessment. |