Suppose your company is thinking about venturing into new uncharted territory. Write a memo to your CEO using the above reference to convince him whether or not to invest in that venture. The new ‘territory’ may be expanding the current product line into a foreign country or a completely new product/service in your existing location.
use this link http://econpapers.repec.org/article/paljintbs/ 2007, vol. 38, issue 2, pages 215-230
You will need to perform to following steps in your memo:
Describe the venture.
Describe the pros and cons of undertaking the venture using techniques from the above paper.
Describe using Real Option Analysis how the company may undertake a course of action that alters the present value of the cash-flows from a real physical asset (creativity is encouraged).
