FNCE 6410

Real Options and Decisions Under Uncertainty

This is an applied course in making investment decisions under uncertainty and flexibility. Traditional NPV analysis using tools such as Discounted Cash Flow (DCF) model assumes that once an investment decision has been made, managers have no control over the outcome and they remain passive throughout the life of the project. Most corporate projects, however, have a great deal of flexibility in terms of their execution. This course will help students develop skills to identify and analyze real options so that they may approach real world corporate investment decisions in a strategic manner. This course may be used to fulfill the requirement for an options course in the MS (Finance) program

Units: 3.0

Hours: 3 to 3