We provide a general valuation approach for capital budgeting decisions involving the modularization in the design of a system. Within the framework developed by Baldwin and Clark (2000), we implement a valuation approach using a numerical procedure based on the Least Squares Monte Carlo method proposed by Longstaff and Schwartz (2001). The approach is accurate, general and flexible.
Titolo: | Valuing Modularity as a Real Option |
Autori: | |
Data di pubblicazione: | 2009 |
Rivista: | |
Abstract: | We provide a general valuation approach for capital budgeting decisions involving the modularization in the design of a system. Within the framework developed by Baldwin and Clark (2000), we implement a valuation approach using a numerical procedure based on the Least Squares Monte Carlo method proposed by Longstaff and Schwartz (2001). The approach is accurate, general and flexible. |
Handle: | http://hdl.handle.net/11562/333263 |
Appare nelle tipologie: | 01.01 Articolo in Rivista |
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