One of the primary responsibilities of a management team is to make decisions during the execution of projects so that gains are maximized and losses are minimized. Decision analysis is especially critical for projects with built-in flexibility, or options. This article explores how merging decision analysis with the well-known principles used in valuing options on financially traded assets can be further enhanced by applying an intuitive approach based on familiar concepts from the field of decision analysis.
Authors: Luiz E. Brando PhD, Warren J. Hahn PE PhD
Source: Graziadio Business Report
Subjects: Finance, Management