Real options valuation on six sigma projects
Visualitza/Obre
Estadístiques de LA Referencia / Recolecta
Inclou dades d'ús des de 2022
Cita com:
hdl:2099.1/25891
Tutor / directorImai, Junichi
Realitzat a/ambKeiō Gijuku Daigaku
Tipus de documentTreball Final de Grau
Data2014
Condicions d'accésAccés obert
Llevat que s'hi indiqui el contrari, els
continguts d'aquesta obra estan subjectes a la llicència de Creative Commons
:
Reconeixement-NoComercial-SenseObraDerivada 3.0 Espanya
Abstract
Economist and financial institutions have long being using option analysis but executives still
use the traditional methods for valuing investments (net present value). According to Miller
and Park [1], these methods require the assumption of certainty of project cash flows, but fail
when used to evaluate strategic investments where payoff is uncertain or at risk. Being
uncertainty one of the major issues of long duration projects, practitioners usually use high
risk project ratios in order to ensure the viability of the projects. By doing so the threshold that
a project has to exceed in order to become viable is sometimes too high, making the
company lose potential benefits or market advantages.
This study wants to better understand Real Option Analysis, its application into Six Sigma
project evaluation models and the added value obtained by the managerial flexibility that the
real options offer. To do so it reviews three real option models: (1) Binomial lattice, (2)
Pentanomial lattice, and (3) staged R&D model and then compares the results obtained by
valuating the same project using the three different approaches and the traditional NPV.
With the numerical demonstrations we see that the staged R&D model needs a further
adaptation to be able to fully compare its numerical results with the other two models. Also
find that Real Option models are still hard to include in the practitioners tool kit due to the
necessity to adapt or create an specific model for each individual project.
Col·leccions
Fitxers | Descripció | Mida | Format | Visualitza |
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Real Options valuation on Six Sigma projects.pdf | Report | 1,353Mb | Visualitza/Obre |