A Real Options Analysis of TransEuropean Telecommunications Wireline Video Deployment
53 Pages Posted: 15 Oct 2012
Date Written: September 15, 2012
The goal of this paper is to demonstrate how the RO methodology can be applied to evaluate TransEurope Communications (TEC) investment projects. Although realistic, the business case analysed here is fictional. The main conclusion and lesson of this exercise is: One cannot determine a value maximizing investment strategy if one does not value managerial flexibility in an appropriate way.
Keywords: investment evaluation, telecoms, real options, managerial flexibility
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