Valuing real options: frequently made errors

Preprint OPEN
Fernández, Pablo;
(2002)
  • Subject: Real options;
    • jel: jel:G12 | jel:G31 | jel:M21

In this paper we analyze frequently made errors when valuing real options. The best way of doing it is through examples. We start by analyzing Damodaran's proposal to value the option to expand the business of Home Depot. Some of the errors and problems of this and othe... View more
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