Real Options:: Managing Strategic Investment in an Uncertain World (Financial Management Association Survey and Synthesis) [Hardcover]

"Real Options is an exciting, accessible introduction to one of the most useful innovations of modern finance. Filled with lively examples from various industries, the book reveals the strategic power of real options in business planning."--David G. Luenberger, Professor of Engineering-Economic Systems and Operations Research, Stanford University, and author of Investment Science
"This new book by Martha Amram and Nalin Kulatilaka provides a much-needed treatment of real options theory aimed at the practitioner. It is comprehensive, highly readable, and replete with useful examples. Every corporate finance practitioner should have a copy of Real Options on hand. --Robert S. Pindyck, Mitsubishi Bank, Professor of Applied Economics, MIT Sloan School of Management, and coauthor of Investment Under Uncertainty
"Uncertainty is the greatest risk a manager faces--and provides the greatest opportunity for creating value. This book offers a way of thinking that helps managers balance

This book is about the real options approach to strategic investments, showing how to capitalize on uncertainty through strategic investments, contracts, and use of the financial markets.

Welcome to the world of real options!!
Real options is an exciting topic with broad range of applications. For more information visit the companion web site to the book: www.real-options.com.

Not sure if the book is for you? Here's a bit more about the book, from our preface:

Many managers believe that uncertainty is a problem and should be avoided. Uncertainty is frequently omitted from important corporate dialogue.

We hold the opposite view. If your firm is properly positioned, then uncertainty can create value and take you to market leadership. The real options approach is the extension of option-pricing theory to real (non-financial) assets, and this book shows how to capitalize on uncertainty through strategic investments, contracts, and use of the financial markets.

We wrote this book to bring the power of the real options approach to managers. Our own experience is that the approach goes beyond the toolkit; it is a way of thinking. And to make the ideas accessible to a broad range of managers, we've only used a few equations.

We wrote this book for:

· Builders and Creators --- Identifying which costs to cut is easier than creating a path forward. This book contains the tools needed to value growth opportunities, investments that capitalize on uncertainty.

· Program Managers --- Anyone involved in managing an investment program knows that things seldom work out as expected. This book shows why and when to revisit projects, and how to design in valuable opportunities for reassessment.

· Coordinators --- Managers with multiple projects under development will appreciate how the real options approach provides consistent valuations across a portfolio, allowing an "apples to apples" comparison of the variety of internal and external opportunities.

· Evaluators --- Managers that are gatekeepers struggle to keep the numerical analyses in line with business intuition, and because the real options approach aligns corporate decisionmaking with shareholder value, it has much to add in these situations.

· Communicators ---Using the real options framework, senior managers can better organize and communicate the costs and benefits of a strategic investment program inside their organization and externally.

Enjoy the book!! Send us comments through the e-mail function at www.real-options.com. We look forward to hearing from you.