Project Valuation Using Real Options: A Practitioner’s Guide By Dr. Prasad Kodukula, PMP, PgMP & Chandra Papudesu Hardcover, 6 x 9, 228 Pages ISBN: 1-932159-43-6 July 2006 Retail Price $54.95 Bonus Tools Kodukula’s member section offers free downloadable assessment tools, spreadsheets to the illustrations in the book, and answers to end-of-the chapter problems.

 “To invest or not to invest?”   Business leaders are frequently faced with this question on new and ongoing projects.   The challenge lies in deciding what projects to choose, expand, contract, defer, or abandon.   The project valuation tools used in this process are vital to making the right decisions.   Traditional tools such as discounted cash flow/net present value (DCF/NPV) assume a “fixed” path ahead.   But real world projects face uncertainties forcing you to change the path often. This book introduces a more practical approach to project valuation known as real options analysis. Derived from options theory in modern finance, this approach is based on the Nobel-Prize winning work of three MIT economists.

Project Valuation Using Real Options provides a systematic approach to project valuation that will enable you to minimize investment risks, exercise flexibility in decision making, and maximize the returns.

Key Features

• Discusses why traditional valuation methods such as DCF/NPV and decision tree analysis are not sufficient in today’s uncertain world
• Explains the real options approach step-by-step in a manner easily understood that does not require an extensive financial background on the part of the reader
• Shows you how to make right investment decisions, achieve strategic alignment of projects, increase project flexibility, and sustain competitive advantage
• Presents multiple scenarios and real world examples from technology, telecommunications, pharmaceuticals, and other industries to illustrate success stories, challenges and the true value of real options analysis

Table of Contents

Chapter 1: Introduction
Chapter 2: Traditional Project Valuation Tools
Chapter 3: Challenges with Traditional Tools
Chapter 4: Real Options: The New Tool
Chapter 5: ROA Calculation
Chapter 6: ROA Application
Chapter 7: Simple Options
Chapter 8: Advanced Options
Chapter 9: Real Options in Real World

Appendices:
1 – Replicating Portfolio

2 – Real Options Application Assessment Tool

3 – Notation

4 – A Glossary of Terms

Retail Price $54.95