BUS F408 Real Options and Strategic Capital Investment (3 cr.) P: (F303 or F304)
and F305 with grades of C- or better. Covers how companies should evaluate projects
and business relationships when they are faced with conditions of uncertainty but
yet have the potential to learn and adapt as the project or relationship unfolds
and uncertainty is resolved. This topic has been traditionally addressed through
the use of decision-tree models and discounted cash flow analysis. It is now being
reshaped by the innovative use of options methodology. The course also provides
an increased understanding and proficiency in the use of spreadsheet modeling and
simulation programs.