chapter 13
Real Options
Learning Objectives
After reading this chapter, you will be able to understand
- the features of real options
- application of real options in capital budgeting
- application in research and development
- application in property development
- the option principles for portfolio investments
Chapter Outline
13.2 Characteristics of Real Options
13.3 Corporate Capital Budgeting Application
13.4 Research and Development Application
13.5 Property Development Application
13.6 Portfolio of Real Options
THE SITUATION
Mohan Bazaar, a department store, is planning to establish a super market in Bangalore. It costs ₹ 500 million to acquire a building for which an advance of ₹ 50 million ...
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