real option pricing for real estate it project zach veenstra
TRANSCRIPT
Real Option Pricing for Real Estate IT
ProjectZach Veenstra
Real Options ExplainedO In finance, a real option is defined as
the “right to obtain the benefits of owning some real world asset without the obligation to exercise that right.”
O Unlimited benefitO Limited downsideO Can be applied to any company
project, including IT
Long Call Option
For the Real Estate IT Project?
O Stage-Growth Option – A stage-growth option is embedded in each stage of the implementation of the project, and it gives us the financial feasibility of future growth with the next stage.
O Stage-Abandon Option – A stage-abandon option is also embedded in each stage of the implementation, but contrary to growth, it indicates the financial feasibility of the future to be bleak, and therefore signifies the next stage be shut down and new ideas be brought up.
Implementation
Enterprise Resource Planning System
Real Option Valuation
Customer Relationshi
p Management System
Real Option Valuation
Knowledge Management System
Real Option Valuation
Geographic Information
System
Real Option Valuation
Thank You!