Relevance of Real Options as a Valuation Tool for Advanced Manufacturing Technology Investments

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F09%3A63508664" target="_blank" >RIV/70883521:28120/09:63508664 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
Relevance of Real Options as a Valuation Tool for Advanced Manufacturing Technology Investments
Original language description
Investing in Advanced Manufacturing Technology represents an example of combined complex valuation problem. The advantage of such Investment compared to a traditional one is its capability to start producing different product or service if the demand forthe originally produced product vanishes. The flexibility of AMTs, which includes the possibility to react to new information, can be seen as an option (the right, not obligation) to undertake some business decision. On the other hand the biggest disadvantage of AMTs is the higher initial investment cost. In an effort to prevent from wrong decisions is needed to involve the value of this option to the investment decision making process. The main goal of the paper is to show how the flexibility of AMTsinfluences the decision making process in the firm using theory of real options.
Czech name
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Czech description
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Project
<a href="/en/project/GA402%2F07%2F1495" target="_blank" >GA402/07/1495: Evaluation of advanced technology benefits</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year
2009
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
Conference Proceedings ?The 11th International Conference of the Society for Global Business and Economic Development
ISBN
978-0-9797659-5-7
ISSN
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e-ISSN
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Number of pages
10
Pages from-to
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Publisher name
Univerzita Komenského v Bratislave
Place of publication
Bratislava
Event location
Bratislava
Event date
May 27, 2009
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
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