A practitioners guide book by tom copeland, vladimir antikarov. Pdf real options theory is about decision making and value creation in an uncertain world. Copeland and antikarov argue that npv, the dominant approach for valuing. There are sufficient examples and you get a good understanding of the topic off the bat. Copeland and antikarov 2003, and kogut and kulatilak 2001 offer definitions of real options, extending the discipline of financial call options to managerial. Therefore, this article has as its main purpose to demo. Existing literature includes a previous paper on real options valuation of wind farms. Previous story copeland antikarov real options pdf this website uses cookies to improve your experience. The real world applications of real option valuation strengths and. However, copeland and antikarov do a great job with this book in introducing real options. Real options are central to many practical problems faced by corporations cooeland entrepreneurs each day,a nd this book provides an excellent set of tools and examples for tackling these challenges.
An application of real option theory in discrete time to the valuation of a highway. Management assumptions and actions drive the value of the real option. This book offers the first practitioners guide for understanding and implementing real options in everyday decision making. But, in terms of actual coverage of real options, trigeorgis is better.
Pdf real options theory is about decision making and value creation in an uncertain. The need for new investments in operating fixed assets is a present reality in the company environment. Get your kindle here, or download a free kindle reading app. A practitioners guide copeland, tom, antikarov, vladimir on. Based on the definition of financial options, copeland and antikarov 2001 provide a precise statement of real options. Tom copeland and vladimir antikarov argue that in ten years real options will replace npv as the central paradigm for investment decisions. A real option is the right, but not the obligation, to take an action e. Avaliable format in pdf, epub, mobi, kindle, ebook and audiobook. For an alternate path to the same conclusion, see brandao, l.
Therefore, an opportunity to invest is similar to a financial call option. Copeland is a very good author, and he is one of my favorites. A practitioners guide by tom copeland, vladimir antikarov. Decisions of investments in operating fixed assets using. In addition, i am coauthor with tom copeland of a bestselling book, real options, a practitioners guide, which is used by mit, harvard and the wharton school and by corporate finance practitioners. Well assume youre ok with this, but you can optout if you wish.
1102 1187 1471 321 111 1295 1173 1145 108 1346 149 37 399 1501 44 367 1327 78 360 1272 448 1473 1269 176 828 1171 165 771 615 1211 1052 441 1416 77 1101 220 1431 367 602 944 320 1044 946 692 425 582 268 620