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Department of Economics, University of Copenhagen
- August 06-17, 2012
- Summer School Courses 2012 "Investment Theory " - Department of Economics, University of Copenhagen
- Copenhagen, Denmark
- Investment projects typically consist of an initial investment and some uncertain dividend. An example could be to build a factory and sell the produce at an uncertain market price. In the course investment projects are seen as flexible in the sense that investor is able to decide when to invest rather than facing the choice between investing now or not investing. Moreover there may be other flexibilities in investment projects such as the possibilities to stop the project and to expand the project. Due to the flexibility the usual NPV rule (if the net present value is positive, then invest) turns out to be wrong. Indeed it is necessary to take the flexibility into account. In the course a theory, where the options or flexibilities in investment projects are priced, is developed. All necessary theory is introduced In the course. [gem?_?? den Informationen des Anbieters - according to site editor's information]The website is no longer available.[Redaktion EconBiz - editors EconBiz]
- JEL Code: